Delhi High Court Orders Google to Pay ₹30 Lakh for Misleading Advertisements
Google fined by Delhi HC for misdirecting searches to rivals' products
The Times Of IndiaImage: The Times Of India
The Delhi High Court has fined Google ₹30 lakh for misdirecting searches related to Hindware's sanitaryware products to rival companies. The court ruled that Google's advertising practices constituted an unfair advantage under the Trademarks Act.
- 01The Delhi High Court ordered Google to pay ₹30 lakh in damages to Hindware Ltd for misdirecting searches.
- 02Google's advertising system allowed competitors to use Hindware's trademark as keywords, diverting potential customers.
- 03Justice Mini Pushkarna ruled that this practice violated the Trademarks Act, constituting an 'unfair advantage'.
- 04Hindware is entitled to recover actual litigation costs, with Google required to pay within eight weeks.
- 05The court emphasized that Google's AdWords program exploited Hindware's trademark to benefit its advertising business.
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The Delhi High Court has mandated that Google pay ₹30 lakh (approximately $36,000 USD) in damages to Hindware Ltd, a sanitaryware manufacturer, after determining that Google misdirected users searching for Hindware's products to rival manufacturers via its advertising system. The court found that Google's practice of allowing competitors to bid on Hindware's trademark as keywords led to significant losses for the company. Justice Mini Pushkarna, addressing two lawsuits from Hindware, stated that such use of trademarks constituted an 'unfair advantage' under the Trademarks Act. Consequently, the court has prohibited Google LLC and Google India from using 'Hindware' or related terms as advertising keywords. Additionally, the court ruled that Hindware is entitled to recover its actual litigation costs, with the payment to be made within eight weeks. The judge criticized Google's AdWords program for monetizing search engine usage in a manner that unfairly benefited competitors at the expense of Hindware's well-established trademark reputation.
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This ruling could set a precedent for how digital advertising practices are regulated in India, particularly concerning trademark usage.
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