Googles Attempts At Holding A Regulatory Role Are Inappropriate

Feb 09 2017

Googles Attempts At Holding A Regulatory Role Are Inappropriate

A blanket ban by Google came into effect world-wide In July 2016 restricting Goggle advertising on ' payday loans' has been described as 'equal parts moralistic and ineffective' in an opinion piece in B and T by .Digital360 copywriter, Hugh Steele.

Steele states that, 'Google essentially made a policy decision for Australian businesses – loans longer than 60 days are acceptable, shorter loans are not. Even though longer loan terms will mean customers pay more in fees..' 

The piece goes on to quote a response from Philips Johns, CEO of NCPA,, reported in the Sydney Morning Herald, that 'described Google as a “pseudo-regulator” and the ban as a “feel-good stunt”,'

Restrictions disregard highly regulated Australian small loans market 

'Despite the Google ban, both loans longer and shorter than 60 days are legal and regulated in Australia as Small Amount Credit Contracts (SACC). Any lender offering these loans must be licensed and adhere to strict lending criteria, including a warning to consumers about borrowing in the application process.'

'Payday' loans don't exit in Australia!

By this action, according to the writer, 'Google has decided to give an advantage to lenders who only offer “longer” short-term loans, even though they are regulated by the same legislation as shorter loans in Australia.'

'The Australian government already regulates short-term loans and consumers are already being protected from businesses operating illegally within those industries.' 

Currently, in Australia, there are no such things as 'payday loans'' as these were banned by legislation in July 2013.

The author continues that, 'For the most part, Google’s AdWords policies are designed to protect users from counterfeit products, dangerous products, dishonest behaviour, and inappropriate or offensive content.. The size of the Google AdWords platform means that its policies have significant impacts on Australian businesses and industries. Google’s attempts at holding a regulatory role are inappropriate.'


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