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What can you do legally if your SEO people get it wrong?
Let’s meet Emma, who runs a boutique clothing store in Melbourne. Her online sales have been steadily growing, and she decides to invest in Search Engine Optimisation (SEO) services to boost visibility and drive more traffic to her e-commerce site. She hires a reputable-looking SEO agency that promises the world: better rankings, increased traffic, and, most importantly, higher sales. However, SEO companies typically provide promises relating to leads, not sales—a standard disclaimer in SEO contracts.
After months of paying high fees, there’s no improvement. In fact, her rankings seem to have dropped, and her website traffic has decreased. Can Emma take legal action?
This is a question we get asked frequently at Sharon Givoni Consulting.
What Can You Do If SEO Services Fail? In this blog, we’ll explore the legal implications of poor SEO services, remedies available, and why proving damages can be difficult in such cases.
How does the law fit in?
When businesses like Emma’s suffer due to poor SEO services, the first question is whether they can hold the SEO agency legally responsible. In Australia, the relationship between a business and its SEO provider is typically governed by a contract outlining the expectations, deliverables, and timeframes. If the SEO agency fails to meet its contractual obligations, the business may have grounds for a breach of contract claim.
However, proving a breach of contract isn’t always straightforward. SEO results are notoriously difficult to guarantee due to the ever-changing nature of search engine algorithms and other factors beyond the agency’s control. As such, many SEO contracts include disclaimers about results. Even so, if an SEO provider makes specific promises and fails to deliver, it’s worth investigating whether they have breached the terms of the agreement.
Consumer law – another piece of the puzzle
In addition to breach of contract, businesses may also have claims under Australian Consumer Law (ACL). The ACL prohibits misleading or deceptive conduct in trade or commerce. If an SEO agency made representations that they knew, or should have known, were unachievable—such as promising top rankings in a short period—this could be considered misleading or deceptive.
Back to Emma. If her SEO agency promised first-page rankings “within 30 days” and knew this wasn’t feasible, she could argue that the agency engaged in misleading conduct under the ACL. Remedies for this include compensation or termination of the contract.
Loss and Damage
While it may seem obvious that Emma’s business has suffered, knowing you were wronged and proving it are two separate things. SEO impacts are often gradual, and it can be difficult to attribute the decline in business performance solely to the SEO provider’s actions. Courts may consider other factors, such as market competition or issues with the website itself.
That said, businesses can still present a valid claim if they can show that poor SEO work directly resulted in lost business opportunities or a decline in online visibility. This might require expert evidence, which can be costly. For example, Emma could demonstrate that her site’s traffic dropped due to unethical SEO practices (e.g., techniques leading to penalties from Google).
What Can You Recover?
If a business can prove that poor SEO services caused a loss, several remedies may be available:
- Monetary damages: For lost profits or the cost of ineffective services.
- Rescission of the contract: Requiring the SEO provider to refund payments and treating the contract as void.
- Injunctions: To prevent ongoing harm, especially in cases involving unethical SEO practices (e.g., “black hat” SEO techniques leading to search engine penalties).
Are SEO Claims Difficult to Prove?
The main challenge in SEO-related claims is proving causation—you must show that the SEO provider’s actions were the direct cause of your business’s losses. Given the multifaceted nature of SEO (which involves elements like site speed, mobile-friendliness, social media presence, and backlinks), this can be difficult to demonstrate.
Many SEO agencies protect themselves with disclaimers stating that rankings and traffic improvements cannot be guaranteed. However, these disclaimers don’t absolve them from all responsibility. If you’re spending a significant amount on SEO with no improvements, it may be time to evaluate whether you have a case.
Keep records of all communications with your SEO provider, especially any promises or guarantees.
Protecting Your Business
As a business owner, it’s crucial to choose your SEO provider carefully and fully understand the terms of your agreement. If things go wrong, Australian law may offer a way of redress. Whether through breach of contract claims or misleading conduct, businesses like Emma’s can seek compensation for losses caused by poor SEO services.
At Sharon Givoni Consulting, we specialise in helping businesses navigate these complex issues. Our goal is to help you turn your ideas into assets™ by protecting your business every step of the way. If your SEO provider has let you down, don’t hesitate to contact us for expert legal advice.
Please note the above article is general in nature and does not constitute legal advice.
Please email us info@iplegal.com.au if you need legal advice about your brand or another legal matter in this area generally.