Another Class Action Click Fraud Suit Against Google

  |  June 30, 2005   |  Comments

A click fraud detection firm accuses the search firm of ignoring the click fraud problem.

Click fraud detection company Click Defense has filed a proposed class action lawsuit against Google. The suit alleges the search giant has ignored the click fraud issue and therefore breached its duty to advertisers.

It's the second such suit to be filed in recent months. The first, in Arkansas, had as its lead plaintiffs Lane's Gifts and Collectibles and Caulfield Investigations. The named defendants in the case include Google, Yahoo, Lycos, AskJeeves, FindWhat.com, Buena Vista Internet Group, LookSmart, America Online, Netscape and Time Warner.

In the Click Defense case, filed in U.S. District Court for the Northern District of California, the plaintiff accuses Google of breaching its contract with advertisers; negligently failing to monitor its AdWords program; enriching itself unjustly at the expense of advertisers; and engaging in unfair business practices.

Google wouldn't comment on the case, but a spokesperson said, "We believe the suit is without merit and we will defend ourselves against it vigorously." Click Defense couldn't be reached for comment by press time.

Click fraud, in which an advertiser is billed for clicks that aren't from genuinely interested parties, has been a big topic of discussion in the industry as of late. A recent survey by the Search Engine Marketing Professionals Organization (SEMPO) found that 45 percent of advertisers were worried about click fraud, though they hadn't tracked it much. Meanwhile, 26 percent said it wasn't a significant concern. Only 6 percent labeled click fraud as a significant problem that they had tracked.

Click Defense, which sells technology and services around detecting and foiling click fraud, wants a judge to order Google to refund advertisers' money. It's also seeking $5 million in damages.

ClickZ Live Chicago Join the Industry's Leading eCommerce & Direct Marketing Experts in Chicago
ClickZ Live Chicago (Nov 3-6) will deliver over 50 sessions across 4 days and 10 individual tracks, including Data-Driven Marketing, Social, Mobile, Display, Search and Email. Check out the full agenda and register by Friday, Oct 3 to take advantage of Early Bird Rates!

ABOUT THE AUTHOR

Pamela Parker

Pamela Parker is a former managing editor of ClickZ News, Features, and Experts. She's been covering interactive advertising and marketing since the boom days of 1999, chronicling the dot-com crash and the subsequent rise of the medium. Before working at ClickZ, Parker was associate editor at @NY, a pioneering Web site and e-mail newsletter covering New York new media start-ups. Parker received a master's degree in journalism, with a concentration in new media, from Columbia University's Graduate School of Journalism.

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Today is our #1 newsletter.
Get a daily dose of digital marketing.

COMMENTS

UPCOMING EVENTS

Featured White Papers

IBM: Social Analytics - The Science Behind Social Media Marketing

IBM Social Analytics: The Science Behind Social Media Marketing
80% of internet users say they prefer to connect with brands via Facebook. 65% of social media users say they use it to learn more about brands, products and services. Learn about how to find more about customers' attitudes, preferences and buying habits from what they say on social media channels.

An Introduction to Marketing Attribution: Selecting the Right Model for Search, Display & Social Advertising

An Introduction to Marketing Attribution: Selecting the Right Model for Search, Display & Social Advertising
If you're considering implementing a marketing attribution model to measure and optimize your programs, this paper is a great introduction. It also includes real-life tips from marketers who have successfully implemented attribution in their organizations.

Resources

Jobs

    • Recent Grads: Customer Service Representative
      Recent Grads: Customer Service Representative (Agora Financial) - BaltimoreAgora Financial, one of the nation's largest independent publishers...
    • Managing Editor
      Managing Editor (Common Sense Publishing) - BaltimoreWE’RE HIRING: WE NEED AN AMAZING EDITOR TO POLISH WORLD-CLASS CONTENT   The Palm...
    • Senior Paid Search & Advertising Manager
      Senior Paid Search & Advertising Manager (Smarty Had A Party) - St. LouisCompany Description: A warm, loving, [slightly wacky] startup, we view...