FTC Guidance to Search Engine Industry re: Need to Distinguish Between Advertisements and Search Results

Overview
On June 25, 2013, the Federal Trade Commission's Consumer Protection staff sent letters to the major search engines on the need to distinguish between advertisements and search results:


 * Sample Letter to General Purpose Search Engines
 * Sample Letter to Specialized Search Engines

These letters update guidance published in 2002 on distinguishing paid search results and other forms of advertising from natural search results. The letters note that in recent years, paid search results have become less distinguishable as advertising, and the FTC was urging the search industry to make sure the distinction is clear.

According to the FTC staff, failing to clearly and prominently distinguish advertising from natural search results could be a deceptive practice. The updated guidance emphasizes the need for visual cues, labels, or other techniques to effectively distinguish advertisements, in order to avoid misleading consumers, and it makes recommendations for ensuring that disclosures commonly used to identify advertising are noticeable and understandable to consumers.

The letters note that the principles of the original guidance still apply, even as search and the business of search continue to evolve. The letters observe that social media, mobile apps, voice assistants on mobile devices, and specialized search results that are integrated into general search results offer consumers new ways of getting information. The guidance advises that regardless of the precise form that search takes now or in the future, paid search results and other forms of advertising should be clearly distinguishable from natural search results.

The updated guidance has been sent to the general-purpose search engines AOL, Ask.com, Bing, Blekko, DuckDuckGo, Google, and Yahoo!, as well as 17 of the most heavily trafficked search engines that specialize in the areas of shopping, travel, and local business, and that display advertisements to consumers.