In an effort to live up to its motto “Don't be evil”, Google has decided to block ads for payday loans and other predatory financial services.
The company announced an update to the terms and conditions of AdWords which will block ads for several types of loans that will go into effect on 13 July. Loans with repayment dates that occur 60 days after they are issued and loans with an annual percentage rate (APR) of 36 per cent will no longer be hosted by Google.
Google's director of global product policy, David Graff explained the company's reasoning behind banning these types of loans: “When reviewing our policies, research has shown that these loans can result in unaffordable payment and high default rates for users so we will be updating our policies globally to reflect that.”
The company will still continue to host ads for other loans on its site including mortgages, car loans, student loans and credit card loans. This is not the first time Google has blocked ads due to their content. In 2015, the company blocked 780 million ads for a variety of reasons including counterfeiting and phishing scams.
Google's has updated its AdWords policy on payday loans to read: “Because a consumer advisory has been issued about payday loans, AdWords will only serve payday loan ads if the phrase “payday loan” (or similar terms) are included in the user’s query. On the Google Display Network, these ads will be shown only on sites related to payday loans.”
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