ACCC wins appeal against Google

This week the Full Federal Court unanimously upheld the Australian Competition and Consumer Commission’s appeal filed in October 2011 against Google.

The Full Court declared that Google, by publishing the four advertisements that were the subject of the ACCC’s appeal on result pages of the Google Australia website, engaged in conduct that was misleading or deceptive, or likely to mislead or deceive, in breach of section 52 of the Trade Practices Act 1974*.

The Full Court also ordered it to put in place a consumer law compliance programme and pay the ACCC's costs of the appeal.

"Google's conduct involved the use by an advertiser of a competitors name as a keyword triggering an advertisement for the advertiser with a matching headline. As the Full Court said this was likely to mislead or deceive a consumer searching for information on the competitor," ACCC chairman Rod Sims said.

The central issue for determination on appeal was whether the primary judge erred in finding that Google did not “make” the representations contained in the four advertisements that were the subject of the appeal.

"The ACCC brought this appeal because it raises very important issues as to the role of search engine providers as publishers of paid content in the online age," Mr Sims said.

"This is an important outcome because it makes it clear that Google and other search engine providers which use similar technology to Google will be directly accountable for misleading or deceptive paid search results," Mr Sims said.

In upholding the ACCC’s appeal, the Full Court concluded that "here Google created the message which it presents. Google’s search engine calls up and displays the response to the user’s query. It is Google’s technology which creates that which is displayed. Google did not merely repeat or pass on a statement by the advertiser: what is displayed in response to the user’s search query is not the equivalent of Google saying here is a statement by an advertiser which is passed on for what it is worth."

The Full Court also stated that “the enquiry is made of Google and it is Google’s response which is misleading… Although the key words are selected by the advertiser, perhaps with input by Google, what is critical to the process is the triggering of the link by Google using its algorithms.”

Background

Today’s judgment follows an appeal filed by the ACCC in October 2011 against the decision by Justice Nicholas of the Federal Court in relation to certain advertisements appearing on Google’s website.

At first instance, the ACCC alleged that Google had engaged in misleading or deceptive conduct by publishing eleven advertisements on Google’s search results page. The headline of each of the advertisements in question comprised a business name, product name or web address of a competitor’s business not sponsored, affiliated or associated with the particular advertiser. When a user clicked the headline of the advertisement, he or she was taken to the advertiser's website.

The ACCC alleged that the advertisements contained representations that, in summary, by clicking on the headline users would find information as to the competitor’s business.

The primary judge found that although a number of the advertisements were misleading or deceptive, Google had not made those representations. Google merely communicated representations made by the advertiser. As such, Justice Nicholas ruled that Google had not breached the Act.

The ACCC appealed the primary judge’s decision in relation to four of the eleven advertisements pleaded at first instance.

The central issue for determination on appeal was whether the primary judge erred in finding that Google did not “make” the representations contained in the four advertisements the subject of the appeal.

With respect to the four advertisements the subject of the appeal, the primary judge found that if Google had in fact made the representations, it would not have been able to rely on the publisher’s defence (as per section 85(3) of the Act) as Google would have been unable to show that it had no reason to suspect that publication of these advertisements was a breach of the Act.

The appeal was heard on 27 and 28 February 2012 before Keane CJ, Jacobson and Lander JJ. 

Civil pecuniary penalties may be imposed for certain contraventions of the Trade Practices Act and Australian Consumer Law for conduct after 15 April 2010. There are no penalties for a contravention of section 52 of the Trade Practices Act or its equivalent - section 18 of the Australian Consumer Law.

* On 1 January 2011 the Trade Practices Act 1974 was renamed the Competition and Consumer Act 2010.

Release # NR 065/12
Issued: 3^rd April 2012

Purchase Recommendations From Blogs Highly Influential to Women

 

61% of women who are active blog users say they have made a purchase based on a recommendation from a blog, a proportion that rises to 87% among BlogHer network members, according to a March 2012 survey from the company, which polled a sample of women from the general population and a sample from its community. Recommendations from blogs compare favorably to popular social networks: among Facebook users just one-third of the general population sample (and 54% of BlogHer community respondents) report having made a purchase based on a recommendation from the network.

Meanwhile, Pinterest scores higher (47%) than Facebook among general population respondents who use the fast-growing network, but slightly lower among BlogHer community members (53%) who use it. Just 3 in 10 respondents from both groups who are active users of Twitter say they have made a purchase based on a recommendation from the site.

The study also notes that the influence of blogs is consistent across verticals: indeed, results from a BlogHer survey released in January 2012 indicated that general population respondents were 30% more likely to use advice from blogs than information or updates from a social network (69% vs. 53%) to help with a consumer electronics purchase, while BlogHer community respondents were 50% more likely to do so (84% vs. 56%).

Most Trust Info and Advice From Blogs

Meanwhile, according to BlogHer’s “Women and Social Media in 2012″ report, blogs’ influence on women’s purchase decisions is likely related to the amount of trust they place in the information and advice they gather from this source. Among BlogHer network respondents that are active users of each of the following media sources, 98% trust the information they receive from blogs, ahead of Facebook (86%), Twitter (85%), and Pinterest (85%). Among general population respondents, blogs and Pinterest (both at 85%) are the most trusted, with Twitter (73%) and Facebook (67%) trailing.

Facebook More a Social Space

Facebook is possibly less trusted as an information source due to women seeing it more as a communal space rather than as an information source. Presented with various categories, general population respondents chose Facebook over blogs for staying up to date with friends and family (87% vs. 20%), having fun (77% vs. 41%), entertainment (69% vs. 50%), and contributing to a community (41% vs. 28%).

By contrast, women said blogs were better suited than Facebook to find out about new products (41% vs. 24%), seek advice and recommendations (39% vs. 35%), get product information (37% vs. 17%), and help make purchase decisions (36% vs. 17%).

Other Findings:

• General population respondents indicated they were more likely to use Pinterest than Twitter to find out about new products (39% vs. 24%), to have fun (58% vs. 47%), and to get product information (26% vs. 18%).
• Daily blog readers from the general population sample were 52.2% more likely than the overall general population sample to say that turning to an online or social media site is the first thing they do when they want to buy something (35% vs. 23%). They were also far less likely to say they do not go online or to social media for a shopping decision (19% vs. 41%). According to a white paper released in January 2012 by Fleishman-Hillard in partnership with Hearst Magazine, more women reported that information found online (40%) was a highly important decision factor to them than their parents (30%), friends (27%), and children (24%). Additionally, information found online was also more significant than information in magazines (17%), newspapers (17%), or on the TV (16%).
• BlogHer network respondents were more likely than the general population sample to use Facebook (94% vs. 84%) and YouTube (75% vs. 62%), and less likely to watch TV (85% vs. 93%).

About the Data: The BlogHer survey fielded two samples online in February 2012. The results are based on the BlogHer network sample of 1,060 women, and the general population sample of 1,011 women. The general population survey was fielded by Vision Critical.

Microsoft unveils Windows 8 for testing

Microsoft this week let consumers start trying out its upcoming touch-based Windows 8 operating system, which aims to power a new wave of computer tablets and traditional PCs designed to counter Apple's big gains in the market through its Macs and iPads.

The test "beta" version of the revamped system was introduced at the Mobile World Congress in Barcelona, the planet's largest cell phone trade show, and borrows some of the look of Microsoft's Windows Phone 7 software for Windows 8.

Windows 8 doesn't have the traditional "Start" menu, and applications are spread across a mosaic of tiles in a design Microsoft calls "Metro" - seen as an attempt by the company as a scramble to preserve its market share. And executives said it powers up on PCs in eight seconds, much faster than the previous version.

The tiles, which resemble road signs, can be navigated with a finger swipe on the screen or with a keyboard and mouse. But those testing out the new operating system won't be able to try out the finger swiping unless they already have systems enabled for touch use, and the system isn't expected to make its official debut until September or October.

Microsoft executives in Barcelona showed off how users can use their fingertips to swipe in and out of applications, and tilt upright computer screens to a flat position so they can be used as two-person gaming boards or big drawing tablets. A slim laptop had a hinge allowing it to be turned inside out so it could be used as a tablet instead.

"It's beautiful, it's modern, it's fast, it's fluid," said Steven Sinofsky, president of Microsoft's Windows division. "Windows 8 is a generational change in the windows operating system."

Microsoft is also opening an Internet "Windows Store" where users can download applications for the operating system, but only if they have Windows 8. Applications are free for those testing out the beta version, but would include both free and paid versions after the operating system is released.

The test version was downloaded by people from more than 70 countries as Microsoft gave its presentation about Windows 8, but the company didn't immediately disclose the number of downloads. The software can be downloaded at http://windows.microsoft.com/en-US/windows-8/consumer-preview.

Apple is also moving features from its iPhone and iPad software over to its Mac software. That trend will be particularly visible in Mountain Lion, the new Mac operating system that's expected to be released this summer.

Windows 8 will also be the first Microsoft software in a long time besides its cell phone software that will run on non-Intel style processors. The company is developing a version that will run on phone-style chips, such as those used in the iPad.

If Windows 8 is a hit, it could help struggling PC makers, including Hewlett-Packard Co. and Dell Inc. Besides giving businesses and consumers a reason to consider new PC purchases, Windows 8 is expected to spawn a new breed of hybrid machines that will be part tablet computer and part laptop like the device that Sinofsky demonstrated.

If Windows 8 is a flop, however, it will increase the pressure on Microsoft CEO Steve Ballmer. His 12-year reign has been marred by the company's troubles adapting to an Internet-driven upheaval. As Microsoft has stumbled, faster-innovating companies such as Apple and Google have elbowed their way into a position to steer the direction of computing for the next decade or two.

Microsoft's financial performance traditionally improves when it releases a new version of Windows. The last upgrade came in October 2009 when Windows 7 hit the market. The company has sold more than 525 million copies of Windows 7 since then. Part of Window 7's success stemmed from pent-up demand; the previous version, Vista, was so clunky and buggy that many PC users stuck with the system they already had on their machines or switched to Apple's technology on Mac computers.

Microsoft shares dipped 13 cents to close at $31.74 Wednesday after the new operating system was introduced. The stock has been hovering around its highest levels since April 2008.

Windows 8 is radically different from its predecessors, with its tiles that provide a glimpse at the activity occurring in applications connected to the Web, such as email.

The system also is expected to enable users to easily back up their pictures, movies, music and other files on a Microsoft storage service called SkyDrive, which will compete against Apple's iCloud.

Julie Larson-Green, head of "Windows Experience" and responsible for delivering a new operating system that wows the world's PC users, showed how documents and data can be stored in one device only to appear instantaneously in another.

"It will populate with everything you are used to using right away," she said.

The operating system's versatility means it can be used to power computer tablets, as well as traditional PCs.

Microsoft badly wants a piece of the tablet market that has been cutting into PC sales since Apple introduced the iPad two years ago.

In the quarter that included the holiday shopping season, Apple shipped 15.4 million iPads, more than doubling the volume from the same time a year earlier. Meanwhile, worldwide personal computer sales dipped slightly, and Microsoft's revenue in its Windows division declined 6 percent. It marked the fourth time in the past five quarters that Microsoft's Windows revenue has fallen from the previous year.

Reversing or slowing that trend is critical for Microsoft. It still relies on the PC industry for about 55 percent of its revenue, according to Nomura Equity Research analyst Rick Sherlund.

"The launch of Windows 8 should provide a few years of robust growth and opportunity for Microsoft to reposition itself to better defend its position against challengers," Sherlund wrote in a note after Microsoft reported the latest erosion in its Windows division.

Besides spurring more sales of the new operating system, Windows 8 is likely to drive demand for the next generation of the Office suite, another major moneymaker for Microsoft. In the demonstration in Barcelona, Office looked just like it normally does - but can be opened with a finger swipe.

Windows 8 could inspire more PC makers to design machines that combine the convenience of tablets with the utility of a notebook computer. These devices would be similar to the so-called "ultrabook" computers that offer a Windows-based version of Apple's lightweight MacBook Air machines.

Once Windows 8 is available, the ultrabook line could be expanded to include machines equipped with a screen that swivels off the keyboard to take advantage of the system's touch controls and provide a tablet-like experience.

Story source: www.ninemsn.com.au

The Safe Way to Save Data Online

Maybe you’ve seen this error message on your computer: “Oops … the system encountered a problem (#700).” Or this one: “Arrggh! Our tubes are clogged!”. Or, sometimes most distressing of all, a notice that a site will be shut down.

These are no ordinary messages. They’re attached to online services that store your mail and contacts (Gmail); photo collection (Flickr); music (Lala) and more. When the computer servers on these sites -- and others like them -- go down, you lose access to your data, and you can’t do anything but wait.

More people are storing information on the Web than ever before -- 143 million in 2009 alone, according to ABI Research. That number is expected to grow to 160.6 million by 2015. Naturally, companies are coming out with new services that store files away from your computer and external drives, or “in the cloud.”

The rewards -- and risks -- of cloud computing
With this rush to offer cloud services comes unregulated risks that have caught the attention of the U.S. Federal Trade Commission (FTC). The FTC has set its sights on the question of who owns the data on the servers and what happens to that data if you decide to discontinue using that service. Earlier this year, the FTC asked another government agency, the Federal Communications Commission (FCC), to look into what cloud computing means for individuals -- and whether the government needs to step in to protect you from cloud computing service providers.

“The storage of data on remote computers may ... raise privacy and security concerns for consumers,”wrote David Vladeck, head of the FTC's Consumer Protection Bureau, in a letter to the FCC. The FTC is concerned that the collection of data stored on a server could mean that your personal information is aggregated with other consumers’ to draw conclusions and sell to advertisers.

Although these issues still have months -- if not years -- to be resolved, cloud services are still a viable option for data storage. You just need to know how to keep your data safe.
How to protect yourself
“There are most definitely ways to protect yourself as a consumer,” says Jeffrey Payne, CEO of Coveros, a security consulting firm that analyzes software for risks. “While some risks are difficult to address, others are easily dealt with by anyone savvy enough to use Gmail.”

The World Privacy Forum suggests taking these steps to understand a service provider’s plans for your data:

• Read the Terms of Service before placing any information in the cloud. If you don’t understand the Terms of Service, consider using a different cloud provider.
• Don’t put anything in the cloud you would not want the government or a private litigant to see.
• Pay close attention if the cloud provider reserves rights to use, disclose or make your information public while you’re using the service.
• Read the privacy policy before placing your information in the cloud. If you don’t understand the policy, consider using a different provider.
• Find out if, when you remove your data from the service, the cloud provider still retains rights to your information. Consider whether that makes a difference to you.
• Ask if the cloud provider gives advance notice of any change of terms in the terms of service or privacy policy.

According to a study by Harris Interactive, 80 percent of respondents had security concerns with cloud computing. Knowing what the risks are -- and how to avoid them -- will make cloud computing a breeze.

Copyright (c) 2010 Studio One Networks. All rights reserved. Story by Laura Rich

Chinese court hears Apple appeal on iPad

A Chinese high court has begun hearing an appeal brought by Apple against a Chinese firm, Proview Electronics, over the use of the iPad trademark.

Apple Inc is in several legal battles with Proview Electronics Co, which the US company says sold it the rights to the iPad trademark in 10 different countries, including China, in 2009. Apple contends that Proview has refused to honour the agreement and has not indicated any willingness to settle with Proview, a maker of computer monitors and LED lights.

Walking into the Guangdong High Court in the southern Chinese city of Guangzhou on Wednesday, lawyers for Proview expressed confidence, but also indicated the company remained open to settling with Apple.

'I don't rule out the possibility,' Xie Xianghui, a lawyer representing Shenzhen Proview Technology, the company's main Chinese subsidiary, told reporters.

On Tuesday, Proview announced it was seeking to regain worldwide rights to the iPad name and is suing Apple Inc in the US for alleged fraud and unfair competition, hoping to have a 2009 sale of the trademark ruled void. Proview was previously only claiming rights to the iPad name in China.

Apart from having the trademark sale voided, it also is seeking unspecified compensation, a share of Apple's profits from alleged 'unfair competition' and an order for Apple to stop using the trademarks.

So far, two lower courts in Guangdong have sided with Proview on the issue, while a Hong Kong court ruled in Apple's favour. Last week, Shanghai's High Court rejected Proview's effort to get Apple to stop selling the popular tablet computer under the iPad name.

Proview, once a major computer monitor manufacturer, launched its own version of iPAD, or internet Personal Access Device, in 2000 but it was not a market hit. Apple launched its popular iPad in 2010.

Proview contends Apple intentionally misled it when it bought iPad trademarks through a special purpose company called IP Application Development Ltd that concealed it was acting on Apple's behalf.

Story source: www.bigpond.com

UK legal claims served via Facebook

Legal authorities say a judge at England's High Court has allowed lawyers to log on to Facebook to serve legal claims.

The Judicial Office for England and Wales said Justice Nigel Teare had agreed to the use of the popular social networking site to serve a claim in a commercial dispute.

Lawyers had been seeking a former employee embroiled in the dispute and successfully applied for permission to notify him via Facebook in a hearing last Friday.

The office had few other details of the case, but said it is thought to be the first time lawyers had sought to use Facebook in this manner.

Ordinarily British legal claims are served in hard copy, although unconventional means are occasionally employed if the people involved are hard to pin down.

Web privacy tools to warn of internet tracking cookies

Internet users will receive a warning if sites do not respect their privacy thanks to new tools being developed by the web's standards setting body.

The World Wide Web Consortium (W3C) wants to help users control how their personal data is managed.

It is designing controls to shield personal data and reveal when sites do not honour privacy requests.

The W3C now wants users, browser makers and businesses to help finish and implement the specifications.

"Users have the feeling they are being being tracked and some users have privacy concerns and would like to solve them," said Dr Matthias Schunter from IBM who chairs the W3C group drawing up the Do Not Track technologies.

Co-ordination

The working group is defining software specifications that will:

• let browser settings tell websites to do less tracking
• let websites acknowledge privacy requests
• define best practices for sites so they can comply with different privacy needs

Dr Schunter said the specifications aim to end the current situation in which different browser makers adopt incompatible Do Not Track systems.

"Currently websites need to implement all these different protocols," he said. "There's no standard way to respect privacy preferences."

"We want to standardise all these protocols so they talk the same language and then tell websites what to do with them," said Dr Schunter.

The tools resulting from the W3C work would aim to be "privacy friendly" and surrender as little information as possible, he added.

For instance, he said, a site could log a user's language preference by noting their name and native tongue and store that in a cookie - little text files sites use to record information about regular visitors.

A more privacy-friendly way, said Dr Schunter, would have browser software note that its owner prefers a particular language without surrendering any identifying information.

Users could be warned about sites that do not do a good job of respecting requests to keep information private.

While the W3C cannot insist that sites and software vendors follow its lead, said Dr Schunter, it was more than likely that they would adopt the technologies.

The finished technologies are expected to be implemented by browser makers first in mid-2012 with websites following soon after as they get to grips with the best practices.

More than 15 firms and organisations are involved in the Do Not Track work including Adobe, Apple, Facebook, Google, Microsoft, the Electronic Frontier Foundation and Stanford University.

Story source: www.bbc.co.uk