SEARCH GIANT Google engaged in “misleading and deceptive” conduct by allowing misleading paid advertisements to be shown with internet search results, an Australian court ruled yesterday.

The Australian Competition and Consumer Commission said the ruling meant that not only Google but other internet search engines would now be held responsible for “deceptive paid search results”.

Google had earlier won a court ruling on the subject, but a full bench of Australia’s Federal Court yesterday overturned that decision on appeal by the commission.

In its judgment, the court said that, between March 2006 and July 2007, Google published search results for queries related to Honda Australia, with results showing paid advertisements for a Honda competitor CarSales.

It said the advertisements suggested CarSales was linked to Honda Australia.

The court said Google should be responsible for search results and that by publishing the paid advertisements had “engaged in conduct that was misleading or deceptive”.

“It is Google’s technology which creates that which is displayed,” said the judges, who examined four cases of misleading search results.

The court ordered that Google set up a compliance programme to ensure paid advertisements on its search engine did not mislead consumers.

It also ordered that Google to pay costs for the court action, which has been running since 2007. – Reuters