The Australian Government's consumer watchdog group, the Australian Competition and Consumer Commission, is suing Google Inc, Google Australia and Google Ireland due to deceptive Adwords ads presented next to Google search results," writes TechCrunch.

The ACCC claims Google ran sponsored links for car dealerships that took users to The Trading Post, a popular weekly classified paper owned by Telstra, Australia's largest telecom.

The ACCC is suing for "misleading and deceptive conduct" on two grounds: By allowing the ads to run, and by its failure to distinguish sponsored links from "organic" links, thereby breaching the country's Trade Practices Act.

Though Google believes the claims aren't merited, they may have a tough time defending themselves in Australia, which is home to especially tough trade practices laws.