Publication Date: 18 February 2013
Page Number: 3
Publication: The West Australian, West Business
Headline: Advertisers feel heat – on and off line
Edition: METRO
In a dispute between Google and the Australian Competition and Consumer Commission (ACCC), the High Court of Australia just handed down a ruling that is good news for online advertising platforms, such as Facebook and LinkedIn.
The decision is notable, too, for its important implication that the legal onus on all advertisers – on and offline, agencies and clients – increases.
The ACCC alleged that, between 2005 and 2008, in response to queries, Google’s search engine results contained misleading and deceptive links. This is in reference to the generation of sponsored links (paid ads) as well as results.
Google, the High Court declared, was no different to other media platforms, whether newsprint, radio, television or online. Advertising agents are gatekeepers, the courts have determined over time. Advertisers have been told that if advertising material does not comply with consumer protection law, they – not the platform which features the advertising – will be liable.
The decision sharpens the divide between media platforms and advertising companies.
One area that remains blurred is advertorial content. If a media platform is integrating advertising (content or perspectives paid for and, or, influenced by advertisers) in editorial content – most often seen in TV, talkback radio and print media special features – then the media platform takes on the mantle of advertiser.
The High Court has warned that media engaging in advertorial are “intermediary publishers” and should ensure the published content does not contravene the law.
A controversial decision last August by the Advertising Standards Board (and publicly backed by the ACCC), stated provisions of the Advertiser Code of Ethics apply to content generated by Facebook advertisers and users.
This is a real concern for advertisers relying on customer endorsements, including “likes” on social media platforms. This – a perfect storm of legal, compliance and budgetary forces – puts advertisers under pressure to get it right.