The group is attempting to stop what they call “scads”, scam ads that confuse consumers. And while the group’s target goes beyond trademark bidding, it does count such tactics as confusing to consumers.

In one internet marketing forum I know, one member said he’s looking into filing a class-action lawsuit against Google precisely for that reason. Turns out some people have advertised in Adwords things like “name cheated me!” or “name scam” promoting products of the member’s competitors, though there’s few that promote his products.

Already some internet marketers (including the one I talked about above) started warning their affiliates of losing their accounts if they continued doing that. Of course, they can hardly do anything against non-affiliates using that tactic with Adwords.

Domain names and business trademark – SHOULD be a separate issue.

Looking forward when ICANN approves all the different domain name extensions – that will be a legal nightmare.