Click Fraud Lawsuits

By Jimmy Daniels
Contributing Writer, RealTechNews

Michael noted a lawsuit pertaining to Google and YouTube in this previous post, well, this isn’t the only one being talked about. Jeff Molander has a big write-up on the Checkmate vs. Yahoo! lawsuit and I’ve found some info on the Click Fraud settlement Google made earlier this year. Both of the settlements in both of these click fraud lawsuits are jokes, and they pretty much let the people responsible for policing this stuff off without a hitch.

Yahoo! Inc. (YHOO) stands to significantly benefit from a completely un-reported but very real class action lawsuit, Checkmate Strategic Group Inc. vs. Yahoo! Inc.. Ironically, Yahoo! stands to benefit from being sued by its advertisers based on the legal action’s settlement terms… terms that absolve the Web advertising giant of liability for fraudulent, and more importantly “unwanted”, clicks sent to advertisers over the last 8 years. In return, advertisers’ get the opportunity to ask for credits (to buy more advertising) and these credits may ultimately be denied by the company.

If you’ve paid for advertising on Yahoo between January 1998 and July 31,1006 you’re automatically a part of the Class which effectively voids (releases) the claims of advertisers over an 8 year period. Again, if you’ve done nothing (that includes not even having heard of this lawsuit) the settlement’s release, in this case, will let Yahoo! off the hook for any fraudulent (or worse “unwanted”) clicks it may have sent your way. Advertisers: You have no further recourse, no refund or guarantee for credit and a claims process that will keep you busy for months… never mind the expense you’ll generate in attempting to claim your advertising CREDITS. Source: Checkmate: Yahoo Closes Door on Click Fraud

I have never advertised with Yahoo! or Overture, but have received the emails, so I know I was opted into it without even doing anything or spending any money.

In late July Google’s $90 Million Click Fraud Settlement was Approved and we now have reports via various forums that Google advertisers are now receiving the payouts.

WebmasterWorld has a two page thread with some comments;

Got my $6.45 wohhooo! headed to McDonalds for a Big Mac on Google.

After spending $480,000 over 3 1/2 years I see a $280 credit in my account for Oct 20.

I’ve spent $188,000 this year alone, and my payout is only $30. This is a joke. I bet I’ve had more click fraud than that in on hour. Source: Search Engine Roundtable

We Say: I received my payment from Google as well, a whopping $2.60, but I spend less than a thousand a month. Yahoo and Google both are getting off pretty easy, and are going to ignore the problem as much as they can until they are forced to admit it is a much bigger problem than they say. If you have done any advertising on Yahoo or Overture at all then you need to read this Checkmate: Yahoo Closes Door on Click Fraud.