Google, Yahoo Sued Over 'Sponsored' Ads

Law360, New York (May 6, 2013, 10:13 PM EDT) -- Search giants Google Inc. and Yahoo Inc. were sued in California federal court by a car replacement part business accusing them of allowing so-called sponsored advertisements for unrelated firms and competitors to appear next to results for its name that allegedly misdirect potential customers to those sites. 

In separate complaints, Del Mar, Calif.-based Parts.com targeted the two search giants, lobbing similar claims against them for trademark infringement and unfair competition, among other things, over sponsored advertisements by firms who pay the search engines to boost their visibility in online search results.

Consumers typing in the Parts.com name on the two search...

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