Dirty tricks in online advertising

Stealing competitors’ identities to feature prominently in internet searches is a major problem for businesses – and brokers are not immune.

Stealing competitors’ identities to feature prominently in internet searches is a major problem for businesses – and brokers are not immune.

Our sister title Canadian Broker News recently reported a broker was accused of using a rival’s name, so he would feature prominently in Google searches. When broker Ron Butler, Googled ‘Butler Mortgage’, the first result – a sponsored result – read ‘Butler Mortgage – second mortgages at great rates’. Yet the link led to Mortgage Central, a different brokerage with a different licensee number, who claimed to have no knowledge of the ad. Although the advert has now been taken down, Butler has asked the regulatory body to penalise Mortgage Central.

Have you Googled your own business recently? You may be in for a shock. We’ve listed three common situations that could affect your online advertising, and some rough guidance as what you can do about them.

1. Misleading statements

The Australian Competition and Consumer Commission states “It is illegal for a business to make statements that are incorrect or likely to create a false impression” – but this rests on the overall impression created, not just questionable search results. Alternately, The Australian Association of National Advertisers’ Code of Ethics point 1.3 reads “Advertising or Marketing Communications shall not contain a misrepresentation, which is likely to cause damage to the business or goodwill of a competitor.” However you still need to make a complaint to the Advertising Standards Board – and bear in mind that you’ll need to cover the costs.

2. Using trademarks in key words

One reason that competitors’ results and ads pop up close to yours is the use of keywords. These words may be hidden from view, but the search engines use them anyway. Confusingly, Google allows the use of competitors’ trademarks in your keywords, even if you complain, although trademarks are not allowed in the actual text. Furthermore, Google will only take responsibility if trademarks appear in sponsored ad text, not in general search results. Finally, it’s worth remembering that place names, and of course the word ‘mortgage’, are unlikely to be taken seriously by Google as trademarked items.

3. Click fraud

This is a slightly different issue, but still a major in problem in online advertising. Click fraud is where competitors use multiple clicks on your ads to drive the cost of them up, either manually or through a computer program. Indeed some businesses use click fraud as a response to the misleading advertising strategies designed above. This isn’t necessarily illegal, but Google has created a number of filters to try and prevent it. You can also complain to Google AdWords directly if you feel you’ve been the victim of click fraud.

Are your competitors using these tactics in their online advertising? Have you taken another business to court over their advertising? Post your experiences in the comments box below, or email the Editor (you can remain anonymous).