Yahoo Settles Click Fraud Case

LOS ANGELES — Yahoo escaped the fate of its rival Google, settling its class-action click fraud case for $5 million in legal fees and promising to institute a variety of anti-click fraud measures.

U.S. District Court Judge Christina Snyder gave preliminary approval for the settlement, which requires Yahoo to pay a small cash sum, extend its period for advertisers to file complaints and take steps to limit click fraud in the future.

Click fraud is the practice of charging pay-per-click advertisers for fraudulent clicks. Investigative firm Checkmate Strategic Group brought the case in June 2005, alleging click fraud dating back to early 2004.

In addition to paying the plaintiff’s legal fees, Yahoo will offer advertisers a one-time extended claims period to submit click fraud claims that occurred after January 2004.

As part of the settlement, the company also will establish a Traffic Quality Advocate office to address advertiser concerns about click fraud and traffic-quality issues. Yahoo will further combat the industrywide problem of click fraud by working to develop a definition of the problem and creating a comprehensive list of identified bots.

While not required to do so in the settlement, Yahoo has pledged to provide advertisers with more clarity regarding refunds for instances of click fraud.

Yahoo’s relatively paltry cash settlement pales in comparison to a recent settlement in a case brought against search engine giant Google. The Mountain View, Calif.-based company agreed to pay $90 million to settle that case.

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

UK Lawmaker Calls for Appointment of 'Porn Minister'

Baroness Gabrielle Bertin, the Conservative member of Parliament who recently convened a new anti-pornography task force, is calling for the appointment of a “minister for porn,” according to British news outlet The Guardian.

FSC Toasts Jeffrey Douglas for 30 Years of Service

n the very same evening when the adult industry was hit hard by the Supreme Court ruling supporting Texas’ controversial age verification law, HB 1181, members of the Free Speech Coalition board, staff and supporters gathered to celebrate Jeffrey Douglas’ 30 years as board chair — a fitting reflection of his reputation as an eternal optimist.

TTS Opens UK Testing Location

Talent Testing Service (TTS) has opened a new U.K. location in Ware, Hertfordshire.

FSC: Age-Verification Laws Go Into Effect South Dakota, Georgia, Wyoming on July 1

The Free Speech Coalition (FSC) has published a statement regarding new age verification laws set to go into effect tomorrow in South Dakota, Georgia, and Wyoming.

FSC Responds to Supreme Court Decision on Texas AV Law

The Free Speech Coalition (FSC) has released a statement responding to last week's Supreme Court decision on FSC v. Paxton, the Texas age verification law.

Sex Work CEO Debuts Upgraded 'GPTease' AI Assistant

Sex Work CEO has introduced the new Canvas in-chat editing feature to its AI-powered, NSFW text generator, GPTease.

UPDATED: Supreme Court Rules Against Adult Industry in Pivotal Texas AV Case

The U.S. Supreme Court on Friday issued its decision in Free Speech Coalition v. Paxton, striking a blow against the online adult industry by ruling in support of Texas’ controversial age verification law, HB 1181.

North Carolina Passes Extreme Bill Targeting Adult Sites

The North Carolina state legislature this week ratified a bill that would impose new regulations that industry observers have warned could push adult websites and platforms to ban most adult creators and content.

Supreme Court Ruling Due Friday in FSC v. Paxton AV Case

The U.S. Supreme Court will rule on Friday in Free Speech Coalition v. Paxton, the adult industry trade association's challenge to Texas’ controversial age verification law, HB 1181.

Ofcom: More Porn Providers Commit to Age Assurance Measures

A number of adult content providers operating in the U.K. have confirmed that they plan to introduce age checks in compliance with the Online Safety Act by the July 25 deadline, according to U.K. media regulator Ofcom.

Show More