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Google amends paid search ad policy for online, mobile

Google is now enforcing a new policy related to both online and mobile paid search advertising that appears in response to a search query.

The policy is in line with what was first announced by Florida Attorney General Bill McCollum in settlements with mobile marketing entities, requiring that advertisers offering a product or service as "free" must also disclose the price of the product or service if the receipt of the free item is contingent on a consumer making a purchase.

"This policy means Google's users and, by extension, Florida consumers will have a better user experience doing searches on Google,"Mr. McCollum said.

Typically, a Google search query for "free ringtones" or a "free iPod" result in a page of organic offers is surrounded on two or more sides by paid advertising in the form of sponsored links or banner ads.

Most "free ringtone" offers and "free iPod" advertising offers require a purchase or purchases to also receive the free item offered.

In January, Florida's attorney general wrapped up a $1 million settlement with Mobile Messenger Americas Inc., a marketer of content for mobile phones and billing aggregator for mobile content promotions.

Per the Jan. 23 settlement with Florida attorney general McCollum's cyber fraud section of his economic crimes division, Mobile Messenger Americas will be required to disclose the price of mobile content or services and other material terms of purchase conspicuously and specifically disclosed on all online transaction screens.

Mr. McCollum undertook a similar $1 million settlement with Media Breakaway LLC, a mobile content marketer based in Colorado (see story). The charges were similar to the Mobile Messenger investigation.

Like the earlier settlement, the $1 million fine to the attorney general's office will be used to fund more cyberfraud investigations and other consumer protection services.

Because of prior settlements, Google understood that the Florida Attorney General has a demonstrable and lasting interest in the lawful marketing of mobile content.

To Google's credit, the search giant took the Florida Attorney General's concerns seriously.

After internal discussions, Google acknowledged that its users' experience would be enhanced by this policy change.

Google's new policy will require ad text containing the word "free" or its synonyms to tell consumers what they need to do to get this free merchandise.

As a result, Google's users and Florida consumers using Google for search should have an easier time understanding the material terms of any such solicitation.

The challenge for publishers now becomes whether they have a product for which consumers are willing to pay.

"We believed Google would value the legal propriety of this policy and its benefit to search users,"Mr. McCollum said. "This will affect those instances in which mobile searches take place on Google's search engine."