Google And Yahoo Accused Of Ignoring 'Click Fraud'

by Glen Shapiro, LawAndTax-News.com, New York

07 April 2005

It emerged this week that a group of online retailers and other internet firms have filed suit against search firms including Google, Yahoo, AOL, Ask Jeeves, Lycos, LookSmart and FindWhat alleging that they were the victims of 'click fraud'.

The search firms usually charge advertisers (who have their adverts displayed alongside relevant search results) based on the number of times that users click on their link. However, rival firms can fraudulently increase advertising costs by repeatedly clicking on the advertisement.

The advertisers in question, which are seeking to have the suit certified as a class action, have argued that the search firms knew about such practices, and knowingly overcharged them for the false clicks.

Of the search portals named in the suit, Ask Jeeves has been the most vocal about the matter, announcing recently that "We intend to defend this lawsuit vigorously".

Although the firms have anti-fraud systems in place, and offer refunds for proven bogus click-throughs, they tend to be close-lipped about the extent of the problem and potential solutions, for fear of scaring away advertisers and tipping off those seeking to abuse the system.

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