July 20, 2016 - Technology company, and internet search powerhouse Google is so Iconic that the name has been converted into a transitive verb meaning “look it up.” To fund such an expansive operation Google relies on advertising for around 90 percent of its total revenue. This is why the company’s May 11th announcement to ban advertisements from payday lenders came as something of a surprise.
The term “Payday Lenders” refers to companies that offer short-term, high-interest loans. Google has previously standing restrictions on where such ads can be placed, but beginning July 13th, this new prohibition will completely ban ads with terms of 60 days or less, and in the US, ads for any loans charging an Annual percentage rate (APR) of 36 percent or more. The ban does not limit the appearance of such loans in the results of a targeted google search. In a statement released on the company blog, there was a brief statement about the purpose of the new rules; “Research has shown that these loans can result in unaffordable payments and high default rates for user.”
Supporters have commended Google’s decision, but there are of course those directly affected by the changes who criticize the policy as being biased and inequitable.