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Bureeu of Coosumw ~
[search engine company
address
address
]
Re: Commercial Alert Complaint Requesting Investigation of Various Internet Search
Engine Companies for Paid Placement and Paid Inclusion Programs
Dear [search engine company]:
The Federal Trade Commission responded
to a complaint filed by Commercial Alert
requesting
that the agency investigate whether certain search engines are violating Section 5 of
the Federal Trade Commission Act ("FfC Act"), 15 V.S.C. § 45(a)(I),. by failing to disclose that
advertisements
areinserted into search engine results lists.
Commercial Alert's complaint alleges that when search engines include Web sites in
search results lists, on the basis of "paid placement" and "paid inclusion, " such search results are
advertisements.
It further contends that "without clear and conspicuous disclosure that the ads
are ads," such "concealment may mislead search engine users to believe that search results are
based on relevancy alone, not marketing ploys."
The FTC's Bureau of Consumer Protection staff reviewed the search engines listed in the
Commercial Alert complaint and others. For the most part, the staff believes that while many
search engine companies do attempt some disclosure of paid placement,
their current disclosures
may not be sufficiently clear. The staff also believes that, depending on the nature of the paid
inclusion program, there should be clearer disclosure of the use of paid inclusion, including more
conspicuous descriptions of paid inclusion itself} As a general matter, clear and conspicuous
I
Section S of the FI'C Act prohibits unfair or deceptive acts or practices in or
affecting commerce. The Commission will find deception if there is a representation, omission,
or practice that is likely to mislead the consumer acting reasonably
in the circumstances,
to the
consumer's detriment. ~ FfC Policy Statement on Deception, Dended to ClifIdale
Associates.
Inc.. 103 F.T.C. 110, 174 (1984).
2
Examples of paid inclusion are programs under which companies can pa