Barry Schawrtz reported out in SearcheEngineLand about a recent Court decision that held that Google Is Not Liable For Bad Products Sold Through AdWords. Here is a more detailed summary of the case from MediaPost: 

A federal judge has dismissed a lawsuit against Google for allegedly displaying fraudulent ringtone ads.

District Court Judge Jeremy Fogel in San Jose ruled that the federal Communications Decency Act immunizes Google from liability for pay-per-click ads created through the AdWords platform.

“Providing third parties with neutral tools to create Web content is considered to be squarely within the protections of (the law),” Fogel wrote. “Even if a service provider knows that third parties are using such tools to create illegal content, the service’s provider’s failure to intervene is immunized.”

Let me repeat that: “Even if a service provider knows that third parties are using such tools to create illegal content, the service’s provider’s failure to intervene is immunized.” Hello? Since when are accessories to a crime, not culpable? 

This outcome pertains directly to the reality that Google has created in Local. The specifics are slightly different in Local but the implication is clear. Think about what it means if this logic were to apply to Local business listings: Google, even if they knew of illegal hijackings of business listings that caused losses to business owners and even if they had not taken action to stop the hijackings, would be immune from any legal responsibility in the matter. 

In the current banking debacle, we have re-learned what happens when the fox is allowed to guard the henhouse. The Communications Decency Act seems to create a similar unregulated and wild west situation in Local. If the outcome of this act is to immunize the likes of Google from profiting from illegal activities then we have come to a sorry state, indeed.

In October I wrote an article at SearchEngineland about the continued hijackings due the community edit feature. I blithely advised in the article that business owners should Claim Your Google Local Business Listing Before Someone Else Does! and noted that only by laying claim to your record could you prevent hijacking abuse and potential thefts of your income. But the reality is much worse than that. Hijackings are still occurring, even on claimed listings. Thus we are all vulnerable to theft of services even if we have followed best practices as recommended by Google.

Historically, in our society, there has always been recourse in this type of situation. It appears that in the new age of the Internet, the Community Decency Act and Local Business listings, this may not be the case. Caveat Emptor!