Google is the entire problem here. Pay them money and your literal scam site can sit above the real site in the search results.
Why are they allowed to direct you to literal scams? Why are they allowed to profit off of literal scams?
This affects the company I work for, who gets called every single day with customer complaints from people who clicked the scam link from a search ad when looking for our site.
Our site has existed for over a decade. There's no justifiable reason that a company who's brand is known by every single grocer or merchant to somehow show up under a literal fly by night scam company pretending to have the same name. It's unacceptable.
My sister got scammed by this exact mechanism just last week.
I often use google shopping when I’m looking at items in categories I’m not familiar with. About half the time there is a store charging significantly less than the others. I’ll open a new tab ask Google search AI if the site is legit, and 95% of the time the response is that it’s a well known scam site. So the anemic search AI knows it’s a scam, but google shopping has no problem sending people there (likely with an affiliate code).
Sounds like you pay less for ads than someone else will. Attention is the currency in the world, pay more and your site will be on top, clearly there are customers that want your product.
You work for a company? Why hasn't your company sued Google for creating this problem yet?