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March 9, 2006

Google Settles Click Fraud Claims

Google is settling a claim against it on behalf of advertisers that it engaged in fraud by suppressing information from advertisers over the amount of fraudulent clicks on web ads.  These would be by individuals clicking on ads for malicious reasons other than commerce..  Advertisers would pay for these clicks even though they were made without any intention to buy anything.  The suit covered advertising fees since 2002.  Yahoo is also part of the suit, but that company plans to fight the charges.

Google will give advertisers credits against $90 million (less attorney fees) to make the case go away.  Market analysts were concerned that this would stem Google revenues, but according to the AP report on the matter, this amount represented less than 1% of the $11.2 billion in revenue covering the time of the suit.

Here's the AP story via the Washington Post.  Google's own posting on the Lane Gift v. Google suit is here.

March 9, 2006 | Permalink

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