Tuesday, April 05, 2005

Class action lawsuit on click fraud

From Dow Jones (via Battelle): A group of advertisers are filing a class action lawsuit against Google, Yahoo, AOL Time Warner, Ask Jeeves, Disney, Lycos, LookSmart, and FindWhat. The advertisers claim that the ad-serving companies charged them for fraudulent clicks. Interestingly, the article only mentions AdWords-style click fraud (i.e., competitors clicking on your ads in Google search results), not AdSense-style fraud. It's unclear from the article what the scope of the lawsuit is. It's also unclear how serious this effort will be. But a ruling in favor of the plaintiffs will certainly embolden other advertisers to sue. Even so, the click fraud issue is unlikely to be resolved in the courts.