Feeds

Google settles click fraud case for $90m

US court approves payout

Security for virtualized datacentres

Google's $90m payout over click fraud has been approved by a US court. Some opponents had claimed that the figure was not high enough to cover losses, but an Arkansas judge has thrown the objection out.

Google will have to pay claimants $4.50 for every $1,000 of advertising they booked with the company. Judge Joe Griffin of Miller County Circuit Court described the settlement as "fair, reasonable and adequate".

Not every company has agreed to the terms of the settlement, but Google told the Associated Press newswire that 19 of its 20 biggest advertisers involved in the case had agreed.

The case began in January 2005 when Lane's Gifts and Collectables took Google to task over its advertising system. It turned into a class action suit and 70 companies joined the case.

Click fraud occurs when an automated programme clicks on a company's adverts, making it look as though a person has clicked from Google to an advertiser's page. Because the advertiser pays for each individual drawn by its ad on Google pages, click fraud can cost advertisers significant sums of money.

The fraud most often takes place when a firm's competitors set up systems to click on its ads to run down its advertising budget. It can even happen if a website publisher clicks on the ad to boost its own revenue.

Google's opponents in the suit claimed compensation because they said Google did not do enough to prevent click fraud taking place.

Google's decision to settle was not unique: Yahoo! settled a similar case in California earlier this year.

The settlement involves credits for more Google advertising for the claimants, who had lobbied for any settlement to be paid in cash.

Google this week announced revisions to its systems that it hopes will make click fraud less common. It says its system allows users to see how many of the clicks through to its site Google believes to be fake. Some industry estimates are reported to put the proportion of clicks that are fake as high as 15 per cent.

Copyright © 2006, OUT-LAW.com

OUT-LAW.COM is part of international law firm Pinsent Masons.

Beginner's guide to SSL certificates

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
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
NATO declares WAR on Google Glass, mounts attack alongside MPAA
Yes, the National Association of Theater Owners is quite upset
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
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?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Choosing a cloud hosting partner with confidence
Download Choosing a Cloud Hosting Provider with Confidence to learn more about cloud computing - the new opportunities and new security challenges.