http://boss.blogs.nytimes.com/2014/11/24/a-business-owner-blames-search-engines-for-lost-sales/?ref=business&_r=0
By Adriana Gardella
Baldino's lock & key had annual sales of about $6.7 million but in 2008, sales started to decline and fell to $4.7 million in 2013. Mark Baldino the owner of Baldino's lock & keys blamed search engines for the drop in sales, saying search engines publish thousands of listings for unlicensed locksmiths which makes it harder for consumers to find his company amid the clutter. He went further to say that search engines benefit from including 'phony' locksmiths because these listings force Baldino's and other legitimate locksmiths to pay for ads to help their business appear higher in search results. Baldino sued Google, Yellowbook and Ziplocal in federal court for violating various federal and state laws, including the Lanham Act which deals with false advertising. The defendants profit frim knowingly listing unlicensed locksmiths. More specifically, Baldino's complaint says that since 2002, it has paid a total of nearly $1 million in advertising fees to the defendants to remove all fraudulent locksmith listings.
On the other hand, lawyers of the defendants argue that "There is no legal obligation for the defendants to do what Baldino is telling them to do", saying that the claims by Baldino's cannot satisfy the requirements of the RICO and Lanham Act and that the defendants were immune from liabilty according to the Communications Decency Act, which protects many online intermediaries that publish information provided by others, with some exceptions.
Would you be like Mr. Baldino and take actions to restore sales or allow the defendants to list whomever they want? After all, the defendants are also running businesses.
I would not take legal action. Every business is changing due to technological advances and companies need to adapt. Bringing legal action also is extremely expensive and fighting a powerhouse, such as Google, will not be short or inexpensive.
ReplyDeleteI agree with Ryan, it's almost pointless to begin a suit with Google because unless you have some solid and easily arguable evidence you will lose. It's just simply too hard to embark on a legal battle with a powerhouse company such as Google that most likely has some of the best lawyers in the nation. However, it's unfortunate that there is so much fraudulent ad activity on the internet and no legal action is being taken against it. No company should have to spend a million dollars to stop fraud on its own.
ReplyDeleteI would not take legal action. Mr. Baldino has to understand that there are competitors. The businesses that use technological advancements are benefiting in todays society. I suggest that Mr.Baldino focus on better advertisement and consistent consumers. Causing legal action is expensive and creates negative publicity.
ReplyDeleteIf Mr. Baldino had stayed ahead of the curve, just like the competition, he would not be in this predicament right now. Marketing has drastically changed over the last 10 years, instead of finding customers, businesses are being found by customers through search engines. Search Engine Optimization is a practice that almost every business is investing in. Instead of fighting court cases, if Mr. Baldino invests some of his marketing dollars in SEO and online advertising, he would have a better chance of reviving his business.
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