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The Internet

FTC Tells Search Engines to Disclose Paid Links 197

linderdm writes "CNN has an article describing how the FTC wants search engines who receive payment for higher rated links, to disclose this to users. The concern is that users go to search engines looking for the best results for their search criteria, not the highest paid results for their search."
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FTC Tells Search Engines to Disclose Paid Links

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  • by gatesh8r ( 182908 ) on Friday June 28, 2002 @09:25PM (#3790269)
    This is really good that the FTC is putting their foot down on this. Why? Being able to let users understand what is relevant to their search instead of all this corperate clutter and pay-offs that may or may not even be relevant. One thing that I do want to see more and more out of government groups is the further pushing of truth in how search engines index and give relevancy -- that is, what people are looking for, not "Click here and buy NOW!" Personally this should only help engines get more traffic -- like how google does things.
  • by Disevidence ( 576586 ) on Friday June 28, 2002 @09:30PM (#3790287) Homepage Journal
    If they're really into this for the consumer, then they should be investigating spyware and malicious web-pages under their jurisdiction.

    While this is good news for helping net newbies, i don't think they did this for the consumers. Probably a few well-known companies were a bit pissed off that search engines linked to competitors over them.

    But if they are in it for the proper reasons, more power to them, and start addressing spyware.
  • oh really? (Score:3, Insightful)

    by NASAKnight ( 588155 ) on Friday June 28, 2002 @09:36PM (#3790313) Homepage Journal
    "When the search engines show that ads are ads, we're hoping consumers will flee these search engines," Ruskin said.

    Do they really believe that? The average joe really isn't going to care, and he probably thinks that if a site can afford to pay the search engine, it must be good.

  • Stupid Idea (Score:3, Insightful)

    by Deltan ( 217782 ) on Friday June 28, 2002 @09:41PM (#3790331)
    This is a retarded idea. Here's why. The more the government interferes with business, particularily online business the less of a free market it actually is. If in fact it is important that users see what is relevant before paid results then the marketplace will change to demand that from search engines. Consumers will flock to what they want to use. The fact that the majority of Internet Cattle are made up of stupid people shouldn't really factor into this at all. People should find out for themselves how search engines work, people shouldn't have to rely on the government to protect them. In the famous words of Jesse Ventura, "The government is not your mom!"

    If a privately owned search engine wants to get money for prioritized links, more power to them, that's free enterprise, it is their perogative to do business that way! If users dislike it they will go elsewhere and that search engine will be out of business. That's how the market works, the government doesn't need to interfere at all, the government is not your mom!
  • Google's Method (Score:3, Insightful)

    by Bilbo ( 7015 ) on Friday June 28, 2002 @09:49PM (#3790356) Homepage
    I have to say I really like the way Google does sponsored links. They are right there, up at the top, clearly marked. That way, if I want to go to the sponsoring site, I can, but with the full knowledge that they were probably not selected because they were the "best match" to my query, but because they paid for the spot. If I go there, then I'm probably looking to buy something in the first place, and I'll be much more likely to spend my money.

    On the other hand, if I don't want to go to a site that will most likely be wanting to sell me something, then I don't have to.

    Seems like it's the best solution all way round.

  • Re:Stupid Idea (Score:5, Insightful)

    by yali ( 209015 ) on Friday June 28, 2002 @09:59PM (#3790394)

    The more the government interferes with business, particularily online business the less of a free market it actually is.

    This criticism doesn't work even from a pro-free-market perspective. Free markets depend on informed actors. If you really believe in free markets, then the government absolutely has an obligation to ensure that economic actors can base decisions on reliable information. (See WorldCom, Enron, Xerox, et al.). The more consumers know, the better the free market works.

  • by tlambert ( 566799 ) on Friday June 28, 2002 @10:02PM (#3790406)
    Yeah, it's annoying when a web catalog business pretends to be a search engine, but instead of returning "best match" returns "catalog item #53715".

    With the current state of affairs, you have something that looks like a gas station, is labelled like a gas station, has credit-card operated pumps like a gas station, and, after you insert your credit card, pump a tank full, get billed, and go to start your car, you find out they are actually selling chocolate syrup, but pretending it's gas, because no one wants to buy chocolate syrup.

    I think that this is as necessary as the little label bars with "Advertisement" in them above and below fake magazine articles in magazines these days.

    -- Terry
  • by frovingslosh ( 582462 ) on Friday June 28, 2002 @10:17PM (#3790447)
    We can't get our gub'mint to outlaw spam, but they can spend their time telling search engines how to do business! Sure, I think this info should be disclosed too, but on a priority basis there are a lot of other things I would rather see the effort spent on, and I'm not sure what legal basis they have to tell a site how to present links.

    As long as the site isn't outright claiming that they don't bias searches based on 'ad revenue' (payola), I don't see that they have done anything wrong in doing it. Could be an unwise move to do it if there is a public backlash, but it doesn't strike me as anything that tax paid "public servants" need to stick their nose in.

  • by Bilbo ( 7015 ) on Friday June 28, 2002 @10:23PM (#3790468) Homepage
    If we let them get away with this, it's one fast ride down a greased up slippery slope to control of information on the net.

    Please check to see that your brain is in gear before letting your mouth run off.

    The FTC isn't saying anything about how these corporations can conduct their business, or how they do their rankings, or who they accept money from. They aren't forbidding search engines from making money, or placing some sites ahead of others based on how much they have been paid.

    All they are saying is that, when the results are presented to the customer, "matches" which are made primarily based on sponsorship are simply marked as such, so that the customer is able to make an informed choice.

  • Re:Google (Score:5, Insightful)

    by JamesOfTheDesert ( 188356 ) on Friday June 28, 2002 @10:37PM (#3790513) Journal
    Gee, I wonder why Google discloses this information without the State stepping in and twisting its arm? Hm. And I wonder why people like Google so much. Hm.

    Maybe this is a non-problem. People will go towards the site that gives them the most reliable results. It's easy enough to learn which search engines are upfront about paid links, and which aren't. Caveat emptor, the better sites will win out. Having the State mandate behavior just encourages users to stop taking responsibility for their own behavior. People start assuming everything is safe and on the level, because hey, the State must be controlling it.

  • by Plasmoid ( 8367 ) on Friday June 28, 2002 @10:45PM (#3790539)
    Actually, this is merely requiring search companies to disclose conflicts of interest. Eg, best result for a query and the desire to upsell site rankings. It is required in other areas, like real estate, already so I don't think this is over stepping precedent.
  • by RebelTycoon ( 584591 ) on Saturday June 29, 2002 @12:20AM (#3790816) Homepage
    Search Engines Should Indicate Page Merit...

    They should indicate why that page was given the ranking, be it because of paid sponsoring, customer satisfaction, link popularity, etc.

    Sure this will help other stack pages and compete, but a good search engine will help filter the crap out, especially if visitors can moderate the link.

    Finally the FTC is doing something that will make the web better.

    Search Engines that indicate why the link is rated higher will become more useful as people will find that they get what they need more often.

  • Comment removed (Score:2, Insightful)

    by account_deleted ( 4530225 ) on Saturday June 29, 2002 @12:42AM (#3790854)
    Comment removed based on user account deletion
  • by Animats ( 122034 ) on Saturday June 29, 2002 @02:54AM (#3791107) Homepage
    The FTC is charged with enforcing a law prohibiting "deceptive advertising". Figuring out what that means can be tough, but over the decades, a broad range of scams have been tried, and there's a general consensus on what "deceptive advertising" means. Today, most deceptive advertising charges are brought against advertisers who are being blatantly deceptive. The FTC isn't that aggressive as a consumer-protection agency.

    Search engine positioning is a new issue. It's not an absolute rule that advertising has to be marked as such, but it's often considered deceptive to run an ad that isn't distinguishable from a story in a publication that runs both. Arguably, mixing paid and unpaid placements in a search engine should be treated similarly.

    Actually, it's the selling of something advertised deceptively that's illegal, not the advertising itself.

  • by MillionthMonkey ( 240664 ) on Saturday June 29, 2002 @05:22AM (#3791378)
    This however, oversteps their bounds. What are they doing telling a non-government related business how to advertise, or what to put on their website? Don't they have a certain aspect of freedom of speech when it comes to composing and editing their websites as they see fit?

    This is a simple application of truth in advertising laws that have applied to other media like newspapers and TV for a long time. That's why drug companies have to ruin those pretty commercials with talk about all those nasty effects like diarrhea and vomiting. "And if your immune system is not normal due to advanced HIV infection, make sure your doctor knows to avoid a possible complication! Improvement was similar in patients that took a sugar pill." They try to distract you with high pressure flowers / colors / babies / fields / pretty people, but they have to say this stuff- it's the law. One type of ad that appears often in newspapers uses the format of a fake newspaper article- like "Amazing New Investment Makes Investors Rich". They try to make the fake article look as much as possible like the other, real articles. When they do this, they have to put the word "ADVERTISEMENT" in the corner, so you know it's an ad and not a real article. If you show a commercial with fat people turning into thin people, or poor people turning into rich people, you have to show "Results Not Typical" on screen. It's been that way for years without anyone making a stink about their First Amendment rights being violated. If you're going to advertise to me you'd better tell me what you're doing. You have the right to say anything you want but you have no right to deceive and there are laws in place to protect the public that prevent you from doing it.

    Now, of course I'm against any corporation defrauding the public as to what they do or how they operate, but is saying that a link was paid for really fraud?

    No, fraud is not saying that a link was paid for when it was.

    Yeah, it sucks that they can lie to you, but anyone can lie to you, it's your responsibility to be paying attention, not the government's to make sure that lies don't happen.

    Ha ha ha, yeah. "It sucks they can shoot you, but anyone can shoot you, it's your responsibility to be paying attention, not the government's to make sure that nobody gets shot." Uhh, I think it is the government's responsibility to regulate fraud. What are the responsibilities of government supposed to be, then? To maintain a standing army, and nothing else? You must be a troll. It fits with the big deal you make about being a Republican and how of course people are going to flame you for being a Republican.

    Now I'm not insane, I'm glad that I'll know that a particular link was a paid advertisement, but do we have to go to the lengths of legislating such a thing? Cut the red tape already...

    The FTC hasn't even said the sites broke the law. They're sending out a letter saying hey, point out your paid links, we don't think you should hide the fact that these are paid links if you are going to call yourself a "search engine", because that is not what a search engine does. The search engines show every indication that they will comply, and it looks like this story is over. The FTC did its job. The current no-bullshit standard for a "search engine" was preserved. The Internet's value as a public resource was conserved. And as even you yourself note, you're glad that you'll know if a particular link was a paid advertisement. So what is your problem? What is your point? Any regulation is evil?

  • by GdoL ( 460833 ) on Saturday June 29, 2002 @05:32AM (#3791397) Homepage
    If search engines are more like yellow pages then they cleary should follow its rules.

    But they couldcreate a fair and consistent and also reliable rate system so users could relate theirs experience on the search.

So you think that money is the root of all evil. Have you ever asked what is the root of money? -- Ayn Rand

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