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.