The FTC examined the advertising methods of internet search
engines, following consumers’ complaints that there was no clear
distinction between editorial content and advertising in search
results.
A US consumer group had alleged that “without clear and
conspicuous disclosure, paid inclusion ads may mislead search
engine users to believe that search is based on relevancy alone,
not marketing ploys.” Also, a study revealed last April that 60% of
US internet users were not aware of the search engines’ advertising
practices.
Last Friday, the FTC sent letters to AltaVista, AOL Time Warner,
Direct Hit Technologies, iWon, LookSmart, Microsoft and Terra
Lycos, asking them to take measures in order to disclose their
advertising practices to consumers.
A spokeswoman for FTC said that the aim is to change the
attitude of the entire search engine industry rather than just the
firms named. She added that “while many search engine companies do
attempt some disclosure of paid placement, their current
disclosures may not be sufficiently clear.”
A spokesman for AltaVista said yesterday that the site has
changed its policy and now cites paid listings as “Products and
Services.” Currently, no search engine apart from Google meets the
FTC’s requirements.
