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Google is being sued in an Australian court for "potentially misleading consumers," reports News.com.au. At issue are the sponsored ad spots Google sells at the top of some search results above the first organic result. The Australian Consumer and Competition Commission (ACCC) alleges that Google has encouraged deceptive practices among businesses by selling the advertising in that top position on its search results pages, while telling consumers that its results are organic.

Specifically, the ACCC names online car dealership Trading Post, which purchased sponsored ads on Google in 2005 for search results relating to searches for the names of other New South Wales car dealerships. The ACCC argues that by using the name of those dealerships in their ads, the Trading Post links appeared to point to the official dealership web sites or implied an affiliation that did not exist. The ACCC alleges that this is a breach of Australia’s Trade Practices Law. Google Sued for Sponsored Search Ads