Feeds

Google slapped with click fraud class action

Lifting the veil

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

Google has been sued for breach of contract, negligence and unfair business practices over its Adwords ad program. The class action lawsuit filed by Click Defense seeks $5m damages.

The filing seeks discovery on whether Google has taken adequate measures to prevent click fraud, which accounts for between 10 and 20 per cent of all Adwords clicks, according to insider estimates; whether it has misled its Adwords customers, and whether the refunds it has collected from Adwords click fraud victims are justified.

Advertisers pay a fee for every click on a text ad, with the amount depending on the value of the keyword. However the lucrative nature of the system means that 'click syndicates' are deployed to generate clicks on competitors adwords or boost their own.

The suit includes a quote from Google's CFO George Rayes last year, describing click fraud as "the biggest threat to the Internet economy".

"I think something has to be done about this really, really quickly, because I think, potentially, it threatens our business model," he said. Google generates almost all of its revenue from its text advertising.

Stephen Messer, who runs the ad affiliate LinkShare, has described 2005 as "the last big year for search before it blows open or people start looking for alternatives".

Click Defense says it bid $3 for its own advertisements when Google users searched for the term "click fraud", and then became a victim of click fraud itself.

Google denies the charge. ®

Related stories

Google and Yahoo! accused of click fraud collusion
Google sues website over click fraud

Secure remote control for conventional and virtual desktops

More from The Register

next story
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.