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 © 2024 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

Clips4Sale Adds 'Spatial Video' Category

Clips4Sale (C4S) has debuted a “spatial video” category for the next generation of VR and AR devices.

Lemon Social Launches Educational Program, 'Metaverse' Feature

Premium fan platform Lemon Social has debuted an "Adult Content University" program and a "Lemon Social Metaverse" feature.

Australian Conservatives Raise Concerns About US-Born Online Censor

Long after progressive free speech advocates in Australia questioned eSafety Commissioner Julie Inman Grant over her campaigns to target adult content, conservatives and libertarians are now raising concerns about the powers granted to the country’s top censor — an unelected former tech exec born in the U.S. — with some calling for her ouster.

Cupcake Girls, Aylo Partner on Educational Video Series for Performers

The Cupcake Girls and Aylo have teamed up to produce a series of educational videos focused on safety standards for adult performers.

My.Club Appoints Nicole Aniston Newest Brand Ambassador

My.Club has named Nicole Aniston its newest brand ambassador.

Elevated X Implements Age Verification Solution, Integration API

Elevated X is now offering age verification services (AVS) through an API.

MojoHost Unveils 'Star Wars Day' Promo

MojoHost will celebrate “Star Wars Day” on Saturday by offering a special discount on new purchases of dedicated servers, VPS and CDN prepay plans throughout the month of May.

2024 XBIZ Miami Show Schedule Announced

XBIZ is pleased to announce the release of the full show schedule for XBIZ Miami, the adult industry's biggest summer conference, set to take place May 13-16.

California Labor Division Rules in Nicole Doshi's Favor in Motley Contract Dispute

The Division of Labor Standards Enforcement of the California Department of Industrial Relations ruled on Monday in favor of Nicole Doshi in her contract dispute with defunct talent agency Motley Models and its former owner Dave Rock.

Video: FSC's Alison Boden Testifies Before California Assembly Committee Regarding Age Verification

Free Speech Coalition Executive Director Alison Boden testified before the California Assembly Judiciary Committee on Tuesday, in opposition to the state’s version of the age verification bills being sponsored around the country by anti-porn religious conservative activists.

Show More