Google Sued Again Over Click Fraud

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

06 July 2005

It emerged this week that online search portal, Google is facing new legal action over allegations that it has not done enough to address the increasing problem of 'click fraud'.

In April of this year, a group of online retailers and other internet firms 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.

In the most recent action, filed by click fraud tracking service, Click Defense, it was alleged that Google is aware that the practice is widespread, but that it has no incentive to act in any serious way to prevent it.

"Google has an inherent conflict of interest in preventing click fraud since it derives the same amount of income from each fraudulent click as it does from each legitimate click," the firm argued in its lawsuit.

Google, meanwhile, has refuted the claim that it has not been proactive in the fight against click fraud, and has pledged to defend itself "vigorously".

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