Tuesday, August 01, 2006

More on Click-Fraud

Sorry for another Internet advertising post...I love this stuff, and I figure it will one day apply to my business...

Anyway, Google just settled a $90 million click-fraud lawsuit with a group of businesses that were advertising through Google's AdWords. Critics are saying that the $90 million is a slap on the wrist for Google, and will not encourage Google to be more vigilant with click-fraud.

Judge OK's Google Click-Fraud Settlement

Click fraud, as you may know, is when someone clicks on a CPC ad with malicious intent. In some instances, a competing business owner will click on the ads of their competitor so that their competitor has to pay the cost of the click. Some say that 20% of all clicks are fradulent.


n this week's hearing, the judge heard objections from plaintiffs who complained that the settlement amount was too small, that too much money will go to attorneys and that the agreement puts too much of a burden on affected advertisers to prove click fraud.



It does seem rather harsh that the judge expects advertisers to prove that click fraud is occurring. This really does seem like Google is getting off easy. However, another lawsuit is mounting by another group of advertisers, and this time it looks like they will be seeking greater damages.

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