Same Legal Action - Different Country

It's the old "a competitor used our brand in their Google ad" complaint that has been heard in other countries and dismissed. Basically it is impossible for Google to know which words are trademarked and if the merchant cares and if the advertiser has a right to use that keyword or not - so Google has a policy of banning the use of trademarks when the trademark owner lets them know.

This time the legal action is in Australia, and is being taken by a government department, the ACCC (Australian Competition and Consumer Commission). As well as the trademark problem, they are claiming that Google doesn't differentiate between organic and paid results enough:

injunctions restraining Google from publishing search results that do not expressly distinguish advertisements from organic search results