The FTC’s judgment concerns Google's AdSense program, a profit-sharing advertisement service popular with smaller Korean Internet companies, and stems from a complaint of unfair practices filed by Korean humor website Humor University (www.humoruniv.com).

Google's AdSense program allows website owners to display ads from Google's sponsors on their websites in exchange for a portion of the ad revenue. Humor University carried AdSense ads on its website from October to December 2005 but has not been paid by Google even after two months.

After Humor University's operator contacted Google's headquarters in the U.S., Humor University was notified that its contract had been terminated because of suspicious activity.

Humor University protested the termination and asked to see evidence of the suspect activity, but was told that under the terms of an AdSense contract that Humor University signed, Google was under no obligation to present such evidence and could refuse payment.

Lee Jung-min, the operator of Humor University, said that the clauses in Google's AdSense contracts were unfair, and that they state "essentially that Google can do anything it wants." Lee said that after filing the complaint with the FTC, several operators of small Korean Internet businesses contacted him with similar grievances about Google.

The FTC on Tuesday said, “Some parts of the clauses presented by Google AdSense are in violation of Korean law. Google was advised to revise or delete the clauses within 60 days. Google expressed its intentions to do so.”

Yoon Jung-hae, the FTC's director general of consumer policy said it was unfair to consumers and businesses that Google's clauses allow it to terminate contracts without sufficient reason and limit objections to how it computes advertising revenue. Yoon added that the FTC will continue to advise foreign businesses on revising improper contracts.

(englishnews@chosun.com )