Google's attempts to capitalize on its Orkut social networking site in Brazil blew up when ads began appearing next to child pornography and racist screeds, causing a round of controversy and a lawsuit for the online giant. Google immediately yanked the ads, reports the Wall Street Journal, but now wrestles with how to control content that can be posted by anyone.
Other networking sites have reached compromises, such as MySpace's commitment to review each of 8 million photos uploaded daily. But as Google tries to ensure that clients' ads aren't placed near anything distasteful, many advertisers have concluded that networking sites aren't necessarily a safe return on investment. "Orkut is a Pandora's box," says a Brazilian ad exec.