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Yahoo To Settle Click Fraud Class Action

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

03 July 2006

It emerged last week that internet portal Yahoo! has reached a settlement agreement in the class action brought against it by the Checkmate Strategic Group.

Yahoo! and Checkmate Strategic Group have been engaged in the class action click fraud lawsuit since June 2005.

Both parties have agreed to the following settlement terms, which received preliminary approval last Wednesday from US District Judge Christina Snyder in Los Angeles:

  • One-Time Extended Claims Period: Yahoo! will offer advertisers a one-time extended claims period during which advertisers can submit click fraud claims for clicks dating back through January 2004. This claims process will be overseen by a retired Federal judge.
  • Dedicated Traffic Quality Advocate: Yahoo! will appoint a Traffic Quality Advocate who will be dedicated entirely to addressing advertiser concerns about click fraud and traffic quality issues. This advocate will serve as the internal voice of the advertiser within Yahoo! on these matters.
  • Annual Access to CTP System and Team: To ensure that the advertising community has ongoing visibility into our Clickthrough Protection system, Yahoo! will host a panel of individual advertisers at its CTP headquarters once a year.
  • Industry-Wide Click Protection Efforts: Yahoo will work with a reputable third party toward building industry-wide efforts to combat click fraud, including development of industry-wide definitions of click fraud and a comprehensive lists of identified bots.
  • Traffic Quality Resource Center: Yahoo! will commit technical and human resources to build a Traffic Quality Resource Center, which will provide advertisers with more detailed information about traffic quality issues (including click fraud) and solutions.

However, according to reports, the settlement does not limit Yahoo's liability, in which respect it differs from a class action settlement agreement reached earlier this year by Google on the same issue.

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