Class Action Accuses Yahoo of Bilking Advertisers by Click Fraud

NEWARK, N.J. — Yahoo has been hit with a federal class-action lawsuit alleging that the search engine fraudulently bills customers for pay-per-click ads by counting clicks improperly and that it places ads on “typosquatting” sites.

Initiated by Crafts by Veronica of Newark, the complaint says that Yahoo promises to put ads in “highly targeted” websites, then enters into syndication agreements to place them on sites that are randomly selected.

The suit, filed in U.S. District Court in Newark, N.J., further says that Yahoo promises not to place its customers’ ads “in pernicious spyware programs, [but] defendants have done just that, and have charged their advertising customers for every click made on spyware popup ads.” The suit names Yahoo, as well as subsidiary Overture and John Doe “syndication partners.”

“Instead of safeguarding against such abuse, finding such practices and diligently putting a stop to them, defendants have actually engaged in such abuses,” the suit says.

Among the spyware vendors named in the suit as partners in Yahoo's ad program are Direct Revenue and Intermix, two companies recently sued by New York Attorney General Eliot Spitzer for violating consumer protection laws.

The suit includes examples of customer ads shown on typosquatting sites, such as “Expedai.com,” a “parked domain,” which includes a Yahoo ad for the real Expedia.com. Expedia would be required to pay Yahoo and the owner of that typosquatted domain a hefty fee each time someone clicks on the Expedia link on that site.

The claim further contends that plaintiffs oftentimes are forced to pay high “sponsored search” prices even when they receive less valuable “content match” advertising places.”

“Defendants pay their syndication partners to show advertisers’ ads in contexts that the advertisers never agreed to or contracted to pay for,” the suit says.

Among the spyware vendors named in the suit as partners in Yahoo's ad program are Direct Revenue and Intermix, two companies recently sued by New York Attorney General Eliot Spitzer for violating consumer protection laws.

The class-action suit includes examples of customer ads shown on typosquatting sites, such as “Expedai.com,” a “parked domain,” which includes a Yahoo ad for the real Expedia.com. Expedia would be required to pay Yahoo and the owner of that typosquatted domain a hefty fee each time someone clicks on the Expedia link on that site.

Yahoo already is challenging “click fraud” claims that it overcharged customers for advertising. One of those suits was filed in California; the other in Arkansas. The Arkansas suit also named Google, which agreed to pay up to $90 million to settle the case.

Plaintiffs attorney Lisa J. Rodriquez of Donna Siegel Moffa and Yahoo officials did not immediately respond to XBIZ by post time.

Copyright © 2025 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

Taylor Nicole Launches New Site Through YourPaysitePartner

Creator Taylor Nicole has launched her new official website through YourPaysitePartner (YPP).

Adult Networking Platform SpicyGigs.com Launches

SpicyGigs, a new adult industry networking platform, has officially launched.

Pineapple Support to Host 'Cream Pie Challenge' Fundraiser

Pineapple Support is hosting its Cream Pie Challenge through August to raise funds for mental health services for industry performers.

Kyrgyzstan President Signs Measure Outlawing Internet Porn

President Sadyr Japarov of Kyrgyzstan on Tuesday signed into law legislation outlawing online adult content in the country.

NC Legislature Overrides Veto of Extreme Anti-Adult Industry Bill

The North Carolina state legislature on Tuesday voted to override Gov. Josh Stein’s veto of a bill imposing regulations that industry observers have warned could push adult websites and platforms to ban most creators and content.

Report: VPN Downloads Soar in UK Following Age Verification Deadline

Virtual private network apps, which can be used to circumvent geo-specific age verification requirements, are topping Apple App Store downloads in the U.K. in the wake of new Online Safety Act rules, the BBC is reporting.

Strike 3 Holdings Sues Meta for Pirating Vixen Media Group Content to Train AI

Vixen Media Group owner Strike 3 Holdings filed suit in federal court this week, accusing Facebook parent company Meta of copyright infringement and alleging that Meta has extensively pirated VMG content to train its artificial intelligence models.

Pineapple Support, Streamate to Host 'Navigating Grief and Loss' Support Group

Pineapple Support and Streamate are hosting a free online support group to help performers cope with grief and loss.

Friday is Final AV Compliance Deadline in UK

Friday, July 25 marks U.K. media regulator Ofcom’s deadline for user-to-user services such as tube, cam and fan sites to implement its requisite “highly effective age assurance” measures for preventing minors from viewing adult content.

AEBN Publishes Popular Searches for May, June

AEBN has released the top search terms for the months of May and June from its straight and gay theaters in all 50 states and the District of Columbia.

Show More