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April 5, 2005

Class action against search engines over click fraud

Link: Class action against search engines over click fraud

Filed under: Search Engines, Marketing, Legal by brian_turner
clickfraud.jpg

A group of online advertisers have begun what they hope will be a class action suit against search engine companies, who stand accused of turning a blind eye to clickfraud because it benefits them.

The suit was reportedly filed in February, and companies such as Yahoo!, Google, AOL, Ask, Lycos, and LookSmart are all named as accused.

Leading of this assault on internet giants is named as Lane’s Gifts & Collectibles, who alleges that the “companies knowingly overcharged for advertisements they sold and conspired with each other to continue doing so”.

The plaintiffs are trying to turn this into a class action suit, which could prove extremely challenging for the companies named - none of which has yet made any public comment on the matter.

Clickfraud is an issue that has been gaining a lot of attention within the internet press.

Online communities have frequently seen discussions involving small businesses raising concerns that clickfraud is not being taken seriously enough, with some implementing their own clickfraud tracking.

The implications are serious - Robin Good detailed concerns last year, and industry commentator John Battelle has also warned of the dangers of clickfraud biting search engine reputation, profits, and online business.

SiliconValleyWatcher even showed a glimpse of how employed for the purposes of clickfraud was being advertised for on the web.





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