FTC
Seeks Info on Search Engines
Fri Jul 12, 7:26 AM ET
By
MICHAEL LIEDTKE, AP Business Writer
SAN
FRANCISCO (AP) - Online search engines are built
to find information in seconds. But most leading
sites appear to be taking their time meeting a
federal request for more transparency on how money
influences their display of search results.
In
late June, the Federal Trade Commission said most
of the Web's largest search engines don't reveal
enough about the financial mechanics that
increasingly give advertisers preferred treatment.
The
FTC delivered its findings as a recommendation but
indicated it could pursue legal action if the
search engines don't build "clear and conspicuous"
distinctions between fee-based results and those
produced by objective formulas.
The
agency did not set a timetable for compliance,
which experts say is technically uncomplicated.
To
gauge the search engines' response, The Associated
Press submitted a series of random queries this
week.
The
spot checks found few changes had been made, even
though it appears all but one of the surveyed
search engines will have to make revisions to meet
the FTC's guidelines.
The AP reviewed search
engines at a dozen sites: Alltheweb, AOL,
AltaVista, AskJeeves, Google (
news
-
external web site),
Hotbot, Looksmart, Lycos, MSN, Overture, Netscape
and Yahoo.
Google was the only search engine that appeared to
meet all the criteria laid out by regulators.
That's probably no surprise to Google's regular
users. Co-founders Larry Page and Sergey Brin have
fiercely protected Google's editorial integrity,
most notably by isolating ad-driven results under
the heading "sponsored links" in shade boxes at
the top and sides of the main page.
The
AP's examination found all the other search
engines still had some fine-tuning to do to fully
address regulators' concerns.
AltaVista changed the way it listed its ad-driven
results the day after the AP asked why the Palo
Alto-based company hadn't adopted one of the FTC's
simplest recommendations.
Paid placements previously listed under the label
"products and services" began showing up under
AltaVista's "sponsored matches" heading on
Thursday.
The
FTC's concerns are focused on two areas.
The
first is paid placements, in which result rankings
are determined primarily by how much money
advertisers are willing to pay to be listed under
specific search terms. These listings typically
are placed above search results generated using
mathematical formulas that rank Web sites based on
their relevance to the request.
The
FTC recommends that that paid placements be shown
in separate areas on the page, labeled "sponsored
links" or "sponsored search listings."
Most of the engines began to
adopt language along these lines after the July
2001 complaint from a Ralph Nader (
news
-
web sites)-backed
consumer watchdog group, Commercial Alert, that
triggered the FTC's inquiry.
In
its advisory, the FTC applauded these changes but
said some search engines still "may not be
sufficiently clear" about their paid placements.
The
FTC asked search engines to disclose more on "paid
inclusion programs." Another way money influences
the rankings, this technique has a more subtle
effect on search results.
To
keep their information databases fresh, search
engines regularly review the content on Web sites,
typically by sending out automated "spiders" that
crawl much of the Internet every few weeks.
Under paid inclusion programs, Web sites pay the
search engines to visit them more frequently and
dig deeper into their content.
Although many search engines contend paid
inclusion only has a minor impact on how results
are sorted, the FTC concluded that the programs
could distort rankings. The FTC thus asked the
search engines to provide an easily located
explanation about paid inclusion and its potential
impact.
It
appears all the engines except Google still need
to make this change. It's not an issue for Google
because its database doesn't include entries from
paid inclusion programs.
If the search engines don't
make changes on their own, federal regulators
almost certainly will take harsher action, said
Danny Sullivan, an industry analyst for
Searchenginewatch.com.
"I
don't think the search engines can afford to take
a 'head in the sand' approach on this," he said.
The
search engines face a balancing act as they try to
comply.
Because they make money every time Web surfers
click on an advertiser's link they don't want the
additional disclosures to lessen the appeal of
their paid listings.
A
national Consumers Union poll of 1,500 adult
Internet users taken during December and January
found that 30 percent would be less likely to use
search engines where advertising influences the
results. Another 56 percent said advertising's
influence doesn't matter to them.
Most of those surveyed — 60 percent — weren't even
aware search engines received money to list some
sites more prominently, an increasingly common
practice.
AltaVista isn't the only search engine tinkering
with its site in hopes of satisfying the FTC.
Ask
Jeeves has provided an additional explanation
about some of its fee-based search techniques in
its "editorial guidelines for answers" section and
said it planned another revision Monday to change
how some advertising-driven results are listed.
"We
are taking these (FTC) guidelines very seriously,"
said Heather Staples, the company's chief
marketing officer.
If
the search engines haven't complied by September,
Commercial Alert said it would probably will file
another complaint with the regulators.
"It's important for people to know whether or not
their search results are being bought by big
business," said Gary Ruskin, the group's executive
director
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