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It cost Google a total of $90 million to settle the 'click fraud' case

Google has agreed to shell out $90 million to settle a lawsuit that alleges the company overcharged thousands of advertisers who paid for false customer leads.  Several plaintiffs filed a class action lawsuit against the popular search engine company over a year ago, with Google announcing the $90 million USD payment yesterday.  "Click fraud" is when users repeatedly click on certain ad links that creates commission for Google each time the link is clicked -- regardless of whether or not the user actually intends to purchase anything from the advertiser.   

"For all eligible invalid clicks, we will offer credits which can be used to purchase new advertising with Google," Wong wrote. "We do not know how many will apply and receive credits, but under the agreement, the total amount of credits, plus attorneys' fees, will not exceed $90 million."

Even though Yahoo was also named in the suit, the company has plans to fight back.  It is not really known how widespread click fraud is amongst major Internet search engines.

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Soo....
By Chadder007 on 3/9/2006 8:23:29 AM , Rating: 2
These companies are suing because they got more people hitting their site by clicking through on links than they did actual purchases? Talk about frivolous lawsuit... Google should have fought it.




RE: Soo....
By masher2 (blog) on 3/9/2006 9:34:01 AM , Rating: 1
No, this article does a poor job of explaining click fraud. It isn't a person clicking on a link and then changing their mind, it is intentional manipulation of pay-per-click links....usually (but not always) by an automated bot.


RE: Soo....
By michal1980 on 3/9/06, Rating: -1
RE: Soo....
By Razta on 3/9/2006 9:46:39 AM , Rating: 2
When you create an adwords account, you set limits on how much per day. You would think that someone would not set thier limit so high that they could not afford to pay the bill if they maxed out.

My company has budgeted 7 dollars a day. So far we never hit that mark. If we did hit it daily for an extended period of time, I might think there was a bot doing the clicking.


RE: Soo....
By masher2 (blog) on 3/9/2006 10:31:49 AM , Rating: 3
The issue is not what you can afford, but being charged for something you're not receiving-- unique clicks from individuals.


RE: Soo....
By Burning Bridges on 3/9/2006 11:51:54 AM , Rating: 2
I thought google merely sells a service, and it's not really their fault if someone uses bots? I mean, do billboard people get sued if someone rips down the advertisement that a company paid for?

Or am I totally off the mark, here?


RE: Soo....
By masher2 (blog) on 3/9/2006 12:07:21 PM , Rating: 2
Using your analogy, if someone rips down the billboard you paid for, but the billboard owner keeps charging you anyway, then yes, you have a case.

Google is offering a service purporting to charge only for unique clicks by individuals. In the case of click fraud, however, advertisers are being overcharged, based on the terms of agreement.


Too bad
By Lifted on 3/9/2006 6:15:10 AM , Rating: 2
I do it every chance I get to my competitors. I know it only amounts to a pitance, but it makes me feel all warm and tingly inside.




RE: Too bad
By Basilisk on 3/9/2006 7:08:02 AM , Rating: 2
Only fair! We've been getting all tingly doing it to you! :)


Why do they bother?
By Snuffalufagus on 3/9/2006 1:24:39 PM , Rating: 2
I don't even get why companies like Google, $ony and Microsoft even bother having legal departments or hiring outside attorneys. They could just post their problems here and let the Anandtech posters explain corporate and international business law to them for free (and we all know free is better).




"A politician stumbles over himself... Then they pick it out. They edit it. He runs the clip, and then he makes a funny face, and the whole audience has a Pavlovian response." -- Joe Scarborough on John Stewart over Jim Cramer

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