Sunday, January 19, 2025
Lawyers Run The WorldFTC Cracking Down on Search Engines

FTC Cracking Down on Search Engines

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The US Federal Trade Commission (FTC) posted on their site that they have sent out letters to over 20 search engines regarding some updates to their guidelines regarding the way search engines display ads in the results.  Since 2002 the FTC has required search engines to label paid results, or ads, in a way which allows people doing the searches to tell the difference between organic results and paid results.  Due to what the FTC calls a “decline in compliance” they have issued some updates as well as sent out these letters to top search engines.

The FTC has not listed all of the search engines which were notified, though they did confirm that AOL, Ask, Bing, Blekko, Duck Duck Go, Google and Yahoo were among those who received their letter.  It also said that 17 of the most highly trafficked shopping, travel and local search engines also received letters which likely means that places like Kayak, Yelp and Nextag were included.  Each search engine got the same letter, a copy of which can be seen HERE.

New Guidelines

In addition to containing a paragraph indicating that the FTC feels that since the 2002 search engine letter was sent out there has been a significant decline in compliance from virtually all search engines, it also contained some updates.  Specifically they covered things like the background shading and borders used on ads, which the FTC said are virtually invisible today.  They ‘suggested’ a more prominent shading that works on all types of monitors and devices, a more prominent border or both.

They also said that in addition to the visual indications, ads should be clearly labeled with text that is either to the left, or above the ads.  The FTC wants the search engines to use unambiguous words such as “Advertisement” or “Paid Results” or something which people will not be confused as to the meaning.

One other interesting update listed in the letter was requiring a voice disclosure to search engines which read off the results to the user.  This is obviously specifically targeting Siri, but as other search engines begin to use voice more frequently it will apply to them as well.  The voice interface used to deliver the search results should “make an audio disclosure that is of an adequate volume and cadence for ordinary listeners to hear and comprehend it.”

Throughout the letter, and the regulations behind it, the FTC is attempting to ensure all the search engines are clearly identifying any paid results they are displaying.  This is to help users know when they are getting the ‘organic’ results or if they are something someone is paying to have on the page.  What, if any, response the search engines will put out is yet to be seen.  What type of enforcement actions will be taken by the FTC if search engines don’t comply with their ‘recommendations’ is also unclear at this time.

What do you think about this letter from the FTC?  Was it a necessary action to get the search engines in line, or an overstep on the part of the FTC?  You can see the full post on the FTC’s website HERE.

Pesach Lattin
Pesach Lattinhttp://www.adotat.com
Pesach "Pace" Lattin is one of the top experts in interactive advertising, affiliate marketing. Pesach Lattin is known for his dedication to ethics in marketing, and focus on compliance and fraud in the industry, and has written numerous articles for publications from MediaPost, ClickZ, ADOTAS and his own blogs.

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