Click Fraud Class Action Lawsuit v. Google

[potentialgeek]

December 9, 2005 -- (WEB HOST INDUSTRY REVIEW (http://www.thewhir.com/marketwatch/120905_The_Web_Host_Industry_Week_in_Review.cfm)) -- This week's industry news saw a prominent industry player lead a class action lawsuit against search giant Google. . .

On Thursday, North Carolina-based Web Host AIT announced that it had taken over as the lead plaintiff in a class action lawsuit that accuses Google of breach of contract and unfair business practices. The company takes over for ClickDefense, which filed the original complaint on June 24, 2005.

AIT alleges that Google has not taken steps to reduce click fraud on its pay-per-click advertisements despite the fact that is aware of the problem.

The negligence, AIT says, has cost it hundreds of thousands of dollars. Google says is still in the process of determining how it will handle the allegations.

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For those who wonder why Google cancels accounts for click fraud. But what exactly does the plaintiff expect from Google? It's kind of a funny lawsuit unless they can prove Google is failing to implement basic ideas or use code they offered?! :confused:

p/g

[davezan]

One challenge for Google here is how much info to give without revealing its
most "delicate" secrets for others to exploit, if you know what I mean.

[potentialgeek]

One challenge for Google here is how much info to give without revealing its
most "delicate" secrets for others to exploit, if you know what I mean.

Good point. I wonder how much they will be forced to divulge in due process and discovery. They may ask the judge to seal the information to protect trade secrets. But I still think the onus and burden of proof will be on the plaintiff to substantiate their allegations, because they are not allowed to attempt a fishing expedition, throw a charge and hope it sticks. And if they can't produce proof, the judge could throw it out.

There must be something in the contracts which absolves Google of liability. That will be the other thing the judge will have to look at early on.

I still don't get how the plaintiff could not have figured out the alleged click fraud early and closed their account before it ran into "hundreds of thousands of dollars."

I mean, if you're monitoring the clicks from the ads, and resultant visits/conversions on your site, and you can put a limit on how much you spend on GoogleAds per day, how on earth do you lose hundreds of thousands of dollars?

p/g

[Malachim]

I still don't get how the plaintiff could not have figured out the alleged click fraud early and closed their account before it ran into "hundreds of thousands of dollars.

Aha, so that's who bid $10,000 for 'North Carolina Hosting'

I am so glad that my VPS and dedicated web reseller review site was wrapped around those three particular keywords that month, I had over dozens of clicks :D

.

[nemock]

Considering the amount of money on the table (not from the suit, but from advertisers who will run for the hills from the bad news generated if Google looses this), Google is likely to "lift their skirt" pretty high to reveal the extent of their fraud detection. It could be an interesting intelligence gathering opportunity and may even make me more confident in my own ads. :)

-Dave

[wilbur]

I don't think this will have an effect on anybody...

Lawsuits are filled all the time, but doesn't mean the cause is just

[Matthew]

This is interesting indeed. What I am curious to know is how anybody could really slow-down click-fraud. I know that I sometimes see one user click on three to four ads in one visit. Hopefully they are all credited to me!

[wildfiction]

I think that Google should have an incentive based click-fraud reporting structure. A way for ethical users to be rewarded for pointing out people and sites that grossly contravene their TOS.

(Exactly the same way that rewards are posted by the police for information leading to...)