Google Offers Click Fraud Settlement

By Ed Oswald | Published March 9, 2006, 11:38 AM

Google will pay $90 million in order to settle a nationwide class action lawsuit over accusations that it was overcharging advertising customers by billing them for false clicks. The class action suit comes from an Arkansas state court case filed last year.

While the company is attempting to settle all "click fraud" claims going back to 2002, similar claims are still ongoing on other courts across the country.

Click fraud occurs when a person displaying advertising on their pages either manually or automatically clicks a link repeatedly in order to generate revenue. The advertiser is then forced to pay for these false leads.

While Google does not directly participate, the plaintiffs argued that the company does too little to prevent it from occurring.

No cash payment would be given as part of the settlement, but only credits towards advertising as well as payment of all legal fees. Customers would have to apply to be a part of the suit, and the settlement still needs to be approved by the judge overseeing the case.

All advertisers from February 2002 on would be considered a part of the settlement. As part of the terms, Google would extend the normal 60-day false click reporting period all the way back to that date.

A hearing to certify the settlement would be held within the next few weeks.

"We have said for some time that we believe we manage the problem of invalid clicks very well," Google Associate General Counsel Nicole Wong said in a statement. "We will continue to do that, and believe that this settlement is further proof of our willingness to work together with advertisers to reimburse invalid clicks."

The search businesses of Yahoo, Walt Disney, Lycos, LookSmart, and FindWhat.com are also named in the lawsuit. At least one, Yahoo, will continue to fight the legal action.

Comments

View comments by with a score of at least

I find it interesting that the providing company gets whacked and not the ones commiting the fraud.

I guess it's an incentive for providers, like Google, to watch how their add banners are being used.

Score: 0

|

One would think, being a company funded by advertising, one might work something into their contratcts with advertisers to avoid this type of thing.

Of course, that's the catch there.... One would actually have to think.

Oh, and...

Google kicks Ass!!!

Score: 0

|

Check Google's term of service and see that such
behavior is a violation of contract!
They thought of it; just didn't do enough to
prevent it and/or prevent unfair charges to their
advertisers.

Score: 0

|

See what happens when you become the big kid on the block? You get sued... a lot... maybe Google really *is* the next Microsoft, lol.

Score: 0

|

Googlesoft :)

Score: 0

|

Nice... lol.

Google = Gods

Score: 0

|

Latest Firefox 3.6 beta fixes 133 bugs, promises faster page load times

A once-sluggish beta testing process has kicked into overdrive, with astonishing success at finding serious bugs. Will Mozilla be able to fix all the others in time?

Apple invokes DMCA, claims Psystar is 'trafficking in circumvention devices'

In trying to close the book on possibly the last attempt at a Mac clone, Apple cites from its own landmark case...but may actually be misinterpreting it.

The fallacy of Facebook privacy

Carmi Levy | Wide Angle Zoom: If an insurance company learns something interesting about its client through the Internet, is that snooping?

Microsoft 'worked with Apple' for Silverlight on iPhone, says Goldfarb

By not making such a big deal out of trying to stream video to the iPhone, Microsoft got a big deal out of it, revealed the Silverlight product manager.

Confirmed: Office 2010 to ship in June

Two weeks after Microsoft had been expected to draw a clearer roadmap for its principal applications suite, it's finally ready to commit to the end of H1.

New EU antitrust commissioner will oversee Microsoft, Oracle+Sun, Intel issues

As one of Europe's most prominent politicians shifts positions in January, her replacement remains a question mark over technology's biggest issues.

Without its own 'iTablet' yet, is Apple missing the boat?

Steve Jobs is on record as dissing "single-purpose" devices like e-readers. But given their recent popularity, was that a mistake?

Not-so-mobile battery life: Time to force the issue

Carmi Levy | Wide Angle Zoom: If power efficiency is important when you buy a car or even a motorcycle, why shouldn't it matter for a smartphone?

Clicker.com cuts through the Web video chaos

In a world where homemade video and Hollywood movies travel the same pipeline, it's good to have a real search engine to cut through the clutter.

Microsoft's Ray Ozzie: 'Nobody's going to be 100% open'

The mobile apps ecosystems of the world may converge over time, led by apps being ported over across platforms, according to the Chief Software Architect.

A case study in improving software: What Office 2010 can learn from Notion 3

A music composition product gambles with a complete overhaul, in an effort to make headway against two well-known competitors in a tough market.