(RTTNews.com) - Chinese search engine Baidu, Inc. ( BIDU ) said it has taken immediate measures to improve its online marketing services and enhance user experience after being requested to do so by Chinese regulators.
In addition to the actions requested by the regulators, Baidu intends to set aside 1 billion Chinese yuan for the purpose of compensating users who establish they were harmed by fraudulent marketing information.
The move comes after an examination of its search ranking practices by Chinese regulators following news reports and critical public comments regarding those practices. The regulatory authorities requested that Baidu take several remedial measures.
The media and internet commentaries also reported that Zexi Weihad learned of the hospital and treatment program when a paid listing for it appeared on the first page of Baidu's search results.
Following these reports, three PRC regulatory authorities, including the Cyberspace Administration of China, the State Administration of Industry and Commerce and the National Health and Family Planning Commission, sent a team of representatives to examine Baidu's business practices and regulatory compliance.
On May 9, 2016, the three regulatory authorities publicly announced the results of their examination. They concluded among other things that Wei found in Baidu's search results, that the bidding price by Baidu's online marketing customers is given significant weight in search results ranking, and that certain results are not clearly identified as online marketing.
The PRC regulators believe these practices affect the fairness and objectivity of search results and might mislead internet users.
Accordingly, Baidu has been requested to immediately modify its practice of providing online marketing services to medical, pharmaceutical, health care and other similar businesses, and refrain from providing online marketing services to medical organizations that do not have requisite qualifications from competent regulatory authorities.
The company has also been asked to modify its existing auction-based paid search practices, including using "credibility" and "reputation" of listed parties as major factors to rank search results by May 31, 2016.
Further, Baidu must establish and enhance user protection mechanisms, including creating channels for users to file complaints, efficiently handling complaints, ceasing services immediately upon discovering unlawful or non-compliant information in search results, and establish a system to compensate users harmed by misleading marketing information.
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Source: Baidu Takes Steps To Improve Online Marketing Services - Quick Facts
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