Google Faces Click Fraud Charges

MOUNTAIN VIEW, Calif.—Dominant search engine Google has been sued in federal court for failing to prevent click fraud in its AdWords and AdSense programs.

The complaint, which has the potential to become a class action suit on behalf of all Google’s advertisers since 2000, maintains that the search giant has not done enough to fight click fraud, which results in increased costs for advertisers as well as increased revenue for Google.

In addition, the suit requests that Google open its records for third-party auditing.

The plaintiff, Colorado pay-per-click tracker Click Defense, estimates that between 20 and 38 percent of all advertising click-throughs are fraudulent.

"[Advertisers’] payments average approximately 50 cents per click, but can reach over $100 for sought-after items valuable to advertisers," the complaint states. Click Defense says that click fraud can be committed by a business that repeatedly clicks on the AdSense listing of a rival, driving up the cost of its rival’s advertising bills.

“We believe this suit is without merit, and we will defend ourselves against it vigorously,” said Google spokesman Mike Mayzel.

Google watchers believe that Click Defense is using the suit as a gambit to peek inside Google’s operations, and the $10 million sought in damages for negligence and breach of contract is a red herring.

Inside Google’s Nathan Weinberg said, “What I don’t understand is why a company that profits from fighting click fraud [Click Defense] would sue a company for not making them unnecessary.”

Weinberg concluded the suit was a canny move. “It seems only obvious that this suit is meant to drum up more clients for Click Defense,” he said.

Google and rival Yahoo were also sued in April for lack of click-fraud vigilance. Arkansas-based lawyers for the case set up a website, LostClicks.com, to solicit additional plaintiffs in a class action suit.

Click Defense CEO Scott Boyenger said that Google was not on trial for committing click fraud itself, “[but they are] intentionally vague in describing exactly what steps are being taken.”

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

2026 XBIZ Miami Conference Schedule Announced

XBIZ is pleased to announce the release of the full show schedule for XBIZ Miami, set to take place May 11-14 at the Goodtime Hotel in South Beach.

Court of International Trade Rejects Trump 'Replacement' Tariffs

The U.S. Court of International Trade on Thursday ruled that President Trump’s 10% global tariff under the Trade Act of 1974, imposed after the Supreme Court invalidated the administration’s broad “Liberation Day” tariff regime, is illegal — but stopped short of a nationwide injunction against the tariff.

UPDATED: Utah VPN Rule Enforcement Paused in Aylo Lawsuit

Provisions of a new Utah law making adult websites liable if minors in the state circumvent geolocation efforts to bypass age verification, which were set to come into force on Wednesday, have been put on hold until Sept. 3.

JustFor.fans Launches 'JFF Create' iPhone App

JustFor.fans (JFF) has launched its new iPhone creator management app, JFF Create.

ShootXEvents Joins ASACP as Media Sponsor

ShootXEvents has signed on as an in-kind media sponsor for the Association of Sites Advocating Child Protection (ASACP).

Pornhub Unblocks UK Users on iOS Devices, Citing Apple AV Effectiveness

Pornhub parent company Aylo on Tuesday announced that users in the United Kingdom will once again be able to access the popular site if they are using Apple devices and have confirmed their age through Apple’s U.K. age-verification process.

North Carolina Weighing Tax on Brick-and-Mortar Sales of Adult DVDs, Mags

The North Carolina state legislature is considering a bill that would impose a new 10% tax on adult DVDs, magazines and other visual material sold by physical retailers in the state.

FSC Launches 'Know Your Rights' 1st Amendment Resource Page

The Free Speech Coalition (FSC) has launched "Know Your Rights," a resource page detailing First Amendment protest guidelines.

Utah VPN Rule for Adult Sites Takes Effect This Week

A new law in Utah comes into force Wednesday, making adult websites liable if minors in the state circumvent geolocation efforts to bypass age verification.

UPDATED: Court Approves Class Action in Labor Claims Against VMG

A U.S. district court has granted class certification in a civil lawsuit filed against Vixen Media Group (VMG) by retired performer Kenzie Anne, making it possible for additional performers to join in a class action against the company.

Show More