A federal judge refused to dismiss a lawsuit alleging that an auto transport company used toxic backlinks to damage a competitor's Google rankings. The June 2 ruling came at the motion-to-dismiss stage: the court did not decide whether the allegations are true. It found the plaintiffs had plausibly alleged a false advertising claim under the federal Lanham Act, along with trademark and Illinois consumer protection claims. Only the California unfair competition claims were dismissed.
According to Montway's verified complaint:
None of these allegations have been proven in court.
Judge Matthew Kennelly found two things plausible:
Together, those let the false advertising claim move forward. Harvard Law professor Rebecca Tushnet analyzed the decision on her 43(B)log, questioning parts of the trademark analysis while examining the false advertising approach.
Until now, a company that believed a competitor was manipulating its search visibility had essentially one option: report it to the search engine. Disavow the links, maintain the file, and wait.
If this legal theory survives, there is a second path — challenging SEO sabotage in court. It is worth restating that the ruling decided only that the case may proceed, not that the defendants are liable.
For a parallel case of a platform mechanism being turned into a weapon, see When DMCA Becomes a Weapon. A tool designed for defense does not stay defensive.
No. It denied a motion to dismiss, meaning the allegations were plausible enough to proceed. Neither the truth of the allegations nor liability has been decided.
The judge found the anchor text could be literally false because it appeared to promise one destination while sending users elsewhere, and that the campaign could constitute commercial advertising or promotion under the Lanham Act.
Monitor backlink profiles and anchor text regularly, disavow via Google's tool, and preserve records of discovery dates, link inventories, and correspondence.
Companies would gain a legal avenue against SEO sabotage beyond reporting to search engines. The current ruling only permits the case to proceed, however.
To apply what you just read to your own site, start with a free audit of where things are now.
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