By: Gianna Blawas – 4 December 2025
When Unethical SEO Backfires: Lessons from the J.C. Penney Search Scandal:
Search engine optimization (SEO) and search engine marketing (SEM) are powerful tools for building visibility online. However, when organizations rely on unethical or illegal practices to manipulate search rankings, the long-term consequences can be severe. One of the most well-known examples of unethical SEO is the J.C. Penney link scheme scandal, which shows how cutting corners in search marketing can damage a brand’s reputation, search performance, and customer trust.
How Organizations Engage in Unethical SEO/SEM:
Unethical SEO, often called “black-hat SEO”, involves tactics designed to manipulate search engines instead of improving genuine user value. Some common unethical practices include:
• Link schemes: Buying or selling backlinks to artificially boost domain authority
• Keyword stuffing: Overloading pages with repetitive keywords
• Cloaking: Showing one version of a webpage to users and another to search engines
• Hidden text or links: Stuffing keywords invisibly for ranking purposes
• Fake or misleading ads: Misrepresenting products in SEM campaigns
In the J.C. Penney case, the brand hired a marketing agency that created thousands of spammy, irrelevant backlinks from unrelated websites to artificially boost rankings for highly competitive terms like “dresses,” “bedding,” and “area rugs.”
For months, J.C. Penney appeared as the #1 Google result for dozens of categories, higher than brands that genuinely dominated those spaces. But once Google reviewed the situation, the company was hit with a major manual penalty, causing search rankings to plummet overnight (Segal, 2011). This example demonstrates exactly how unethical SEO offers short-term gains but large long-term risks.
Ethical vs. Unethical SEO:
Ethical SEO, also known as “white-hat SEO”, focuses on strategies that improve the user experience, provide helpful content, and follow search engine guidelines. Examples include:
- Creating quality, original content
- Earning backlinks naturally through value
- Using accurate keywords and meta descriptions
- Disclosing sponsored promotions
- Ensuring accessibility and mobile friendliness
Unethical SEO, in contrast, focuses on tricking the algorithm instead of serving the user. The J.C. Penney backlink scheme is a prime example of how a brand can violate Google’s Webmaster Guidelines by using manipulative ranking tactics.
Where ethical SEO aims for sustainable growth, unethical SEO aims for shortcuts.
The Benefits of Being Ethical:
Organizations that commit to ethical SEO benefit in several important ways:
1. Long-term visibility and stability
Ethical SEO builds rankings through genuine authority, so performance is sustainable. This protects the brand from sudden search penalties.
2. Stronger brand trust
Users trust companies that communicate honestly, avoid misleading ads, and provide real value. Transparency in marketing strengthens brand reputation.
3. Better user experience
Ethical SEO aligns with user-friendly practices, fast page loads, helpful content, and accurate information. Happier users lead to higher conversions.
4. Protection from legal or regulatory issues
Misleading ads or deceptive marketing can violate FTC guidelines. Ethical marketing protects the company from lawsuits and regulatory fines.
5. More effective SEM results
Ethical SEM avoids deceptive ad copy, fake urgency, or misrepresented pricing, reducing refunds, complaints, and wasted ad spend.
The J.C. Penney scandal is a reminder that unethical shortcuts may work temporarily, but they undermine long-term growth. Ethical SEO, on the other hand, builds credibility, relationships, and sustainable ranking power.
Conclusion:
The J.C. Penney case demonstrates how unethical SEO tactics can completely derail a company’s digital performance. Link schemes and deceptive practices may produce short-term ranking boosts, but they ultimately harm search visibility, consumer trust, and brand reputation. By committing to ethical SEO and SEM practices, organizations protect themselves legally and build genuine long-term success. Good SEO is not just about ranking, it’s about creating real value for users.
References
Segal, D. (2011, February 12). The dirty little secrets of search. The New York Times. https://www.nytimes.com/2011/02/13/business/13search.html
Google. (n.d.). Search Essentials: Spam policies for Google web search. https://developers.google.com/search/docs/essentials/spam-policies
Federal Trade Commission. (n.d.). Advertising and marketing on the internet: Rules of the road. https://www.ftc.gov


