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My parents don't realise that when they click on the top link of a google search result, they are clicking on an ad. I'd guess that many many other people don't realise this either.

That would seem to categorise these adverts as deceptive, right? So, when will Google be blocking these adverts?

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I have seen many people - young and old - do the exact same thing, not knowing they are ads.

a co-worker did this, it took him to a screen that was designed to imitate the windows blue screen of death.

I assume it was also attempting to deliver some kind of payload as well, because the browser crashed on that page.

There is no way an advertising standard in which google was a part of laying the ground rules could be considered a "Better Ad".

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