Feeds

Google slapped with click fraud class action

Lifting the veil

  • alert
  • submit to reddit

Security for virtualized datacentres

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

Providing a secure and efficient Helpdesk

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
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
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.