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

AEBN Publishes Popular Searches by Country for December, January

AEBN has released the list of popular searches from its straight and gay theaters, by country, for December and January.

Jim Austin Joins CrakRevenue Team

Strategist Jim Austin has been hired by CrakRevenue.

Judge Dismisses NCOSE-Backed Suits Against Adult Sites Over Kansas AV Law

A federal judge on Tuesday dismissed lawsuits brought against two adult websites in Kansas for alleged violations of the state’s age verification law.

Aylo/SWOP Panel Spotlights Creators' Struggle for Digital, Financial Rights

Aylo and Sex Workers Outreach Project (SWOP) Behind Bars presented, on Tuesday, an online panel on creators’ rights, debanking and deplatforming.

AV Bulletin: Canada, Italy, Australia Updates

Since the Supreme Court’s decision in Free Speech Coalition v. Paxton, more state age verification laws have been enacted around the United States, as well as proposed at the federal level and in other countries. This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Holly Randall Soft Launches 'Wet Ink' Magazine

Holly Randall has officially soft-launched the creator-focused publication Wet Ink Magazine.

Virginia 'Porn Tax' Bill Delayed Until 2027

A Virginia House of Delegates subcommittee on Monday voted to postpone until next year consideration of a bill that would impose a 10% tax on the gross receipts of adult websites doing business in that state.

Virginia Becomes Latest State to Weigh 'Porn Tax'

The Virginia House of Delegates is considering a bill that would impose a 10% tax on the gross receipts of adult websites doing business in that state.

Elizabeth Skylar Launches Production Banner on VRPorn.com

Elizabeth Skylar has launched her own virtual reality production banner on VRPorn.com.

CrakRevenue Introduces 'Trend Explorer' Feature for Affiliates

CrakRevenue has debuted the new Trend Explorer feature for its affiliates.

Show More