Amazon Accused Of Misleading Search Results

Amazon will have to go to court to defend claims that the search tool on its site misleads customers about the products it stocks. Watchmaker Multi Time Machines (MTM) wants Amazon to make it clearer that it doesn't sell its watches.

MTM specializes in selling expensive watches which are particularly sturdy and water resistant. They are designed to display the time in a way that's easy to read with very little light used; however, some models also have an option to switch on an extremely bright light. Although sold to the public, many of the watches are designed for and used by the military and special operations units.

Special Ops Watches at Heart of Matter

The legal dispute is about what happens when you search on Amazon for "MTM Special Ops" and other terms related to the company's trademarks.

Because Amazon doesn't stock MTM products, none of its watches are listed in the results. However, similar-looking watches from rival manufacturers appear, with the list of results headed by the search term in question. The term even still appears on screen if a customer clicks through to see more details on a particular watch.

MTM believes that runs the risk of confusing customers and making them think some of the listed watches are official MTM Special Ops products. It says the way the results appear is a misleading use of the trademarked terms; it also says that although Amazon is entitled to show rival products in the results, it should make clear it does not sell any MTM watches. According to the firm, that approach is commonly used for search results on other retail sites.

When MTM first launched a court case, Amazon successfully argued that the case was groundless and should be dismissed without going to trial. MTM appealed that verdict and two out of the three judges who heard the appeal agreed to its request.

Case Has Sufficient Doubt, Say Judges

While they aren't making any predictions on whether Multi Time Machines will successfully prove trademark infringement, the judges say there's enough doubt in the case that "the matter can be determined only by resolving genuine issues of material fact," and thus it must go to a full trial. (Source: uscourts.gov)

The third judge disagreed, however, saying that Amazon's labeling and photographs are clear enough that a reasonable trial couldn't "possibly find that a reasonably prudent consumer accustomed to online shopping would likely be confused by the Amazon search results."

Amazon has already faced a similar dispute in the United Kingdom where it was sued by cosmetics manufacturer Lush. Amazon lost that case and searching for the name now brings up a clear message at the top of the search results page reading "We don't sell Lush cosmetics." (Source: engadget.com)

What's Your Opinion?

Should Amazon be clearer about the fact that it doesn't sell MTM's watches? Does the fact that Amazon lists the actual manufacturers mean there's no serious risk of confusion? Should the two sides work out a compromise rather than tying themselves up in court?