Search Engine News :: Optimise Web Sites for Organic Search

Thursday, February 19, 2004

The FTC and Disclosure, Part 1: "Commercial Alert filed its complaint last July, claiming a lack of disclosure about paid content integrated into search results constituted 'deceptive advertising,' which the FTC protects consumers from. The group, backed by consumer advocate Ralph Nader, sees the FTC action as a victory."

The FTC agreed, stating in its response to Commercial Alert's complaint:

Because search engines historically displayed search results based on relevancy to the search query, as determined by algorithms or other objective criteria, the staff believes that consumers may reasonably expect that the search results displayed by individual search engines are ranked in accordance with this standard industry practice -- that is, based on a set of impartial factors. Thus, a departure from the standard practice, such as a search engine's insertion of paid-for placements in the search list, may need to be disclosed clearly and conspicuously to avoid the potential for deception.

Commercial Alert Complaint Letter Attatchment: "Finally, the staff recommends that you review your Web sites to ensure that:
any paid ranking search results are distinguished from non-paid results with clear and conspicuous disclosures;
the use of paid inclusion is clearly and conspicuously explained and disclosed; and
no affirmative statement is made that might mislead consumers as to the basis on which a search result is generated. "