> Does this extend to ads displayed in search results?
Probably not, for the same reason search results aren't an issue.
Search engines have that exemption for results because they don't control the content of the sites they index. That's not the same for ads - Google can and should have more stringent review and KYC processes - but it seems they choose not to.
Search engines have that exemption for results because they don't control the content of the sites they index. That's not the same for ads - Google can and should have more stringent review and KYC processes - but it seems they choose not to.