Is Your Pay-Per-Click Ad Breaking The Law?
Many countries, from the United States, to the United Kingdom, to Australia, have laws against misleading and deceptive advertising. While we can probably all tell when something is a blatant lie… it’s often those ‘border line’ situations that get marketers into trouble.
Also, it turns out that some forms of media are riskier than others for giving rise to misleading and deceptive ads. What’s one of the most troublesome advertising mediums? Yep, you guessed it: pay-per-click advertising.
The problem with PPC advertising for marketers (and their lawyers) is that (a) the environment is generally very competitive, (b) your ads must make an instant impression in order to be effective (i.e. to generate a click), and (c) you only have a limited number of characters in which to convey your message.
Given all this, it’s oh-so-tempting to be as bold as possible within your ad copy. Unfortunately, being bold can also translate into making claims or promises that aren’t technically true, or that convey an overall impression that isn’t true.
What exactly is misleading and deceptive advertising will vary from jurisdiction to jurisdiction. For that reason, this article is not legal advice, and I suggest you get a qualified lawyer to advise you about how the law applies in your jurisdiction. Also keep in mind that if you advertise to people in different countries – via Google, Yahoo or otherwise – you may technically be subject to the laws of those countries too.
As a rule of thumb, however, anything that gives consumers an overall impression of something that isn’t true is misleading and deceptive and potentially unlawful. Importantly – and depending on the relevant law in your jurisdiction – it’s the overall impression conveyed by the ad that matters – not the overall impression conveyed by the combination of the ad and, say, the landing page when someone arrives on it.
In other words, the question is whether the advertisement alone entices someone to take an action (e.g. click through to the landing page) based on a claim that isn’t really true… not whether the ad AND the landing page together convey a claim that isn’t true.
So while you might qualify or correct the ad copy on the landing page… your PPC ad may still be construed as being misleading and deceptive.
For example, if your pay-per-click advertisement says something like ‘Get Free Bananas’ and then, when someone clicks through to the landing page, the landing page copy says that they will only get the free bananas if they buy a bag of oranges, then the PPC ad could be viewed as being misleading and deceptive.
Does that mean you can never emphasize a free, but qualified offer, in your ad copy? I don’t think so. Again, subject to the relevant laws in your country, you might be able to get around this by saying something like ‘How To Get Free Bananas’ in your advertisement.
In this case you’re not promising that the person viewing the ad will definitely get free bananas by clicking on the landing page link. Instead, you are merely eluding to the possibility of them getting free bananas. Should the consumer click through to the landing page you can then explain the offer i.e. how they can get the free bananas.
Now, you may have read this – and may have even obtained legal advice – and be left wondering why some of the ads you see are misleading and deceptive. Why do some people seem to be getting away with it?
For better or worse, it likely depends on whether the relevant authorities or competitors are willing to take legal action against such wrongdoers. The relevant consumer protection agencies, such as the United States Federal Trade Commission and the Australian Competition and Consumer Commission (ACCC) are often more vigilant in some industries and niches – where there’s a history of wrongdoing that has cost consumers dearly – and not so vigilant in others.
Also, where the industry players tend to be big companies with enough money to employ lawyers, you will often see more companies suing each other or dobbing each other in to the authorities for misleading advertising. In contrast, you’ll likely see much less of this in ‘cottage’ industries.
Whether because they think the risk of getting sued is low, or because they don’t know they’re contravening the law, some companies may well run unlawful ads. However, the risk is still there… and who’s to say their assessment of that risk is correct?
All in all, it’s better to be safe than sorry, and for that reason I suggest running PPC ads that are in every respect true. That’s better for your customers and better for you. And, when it comes to those ‘border line’ situations… get legal advice!
About the author
Anna Johnson publishes Internet marketing newsletter, Kikabink News. Go here to get a FREE subscription to Kikabink News as well as a FREE copy of Anna's ebook, Killer Internet Marketing Tips, plus four FREE killer 60+ minute audio interviews with top Internet marketers: Killer Internet marketing tipsTags: accc, FTC, misleading and deceptive, Pay Per Click, Pay Per Click advertising, ppc, ppc advertising