Thursday, 9 March 2006

Google To Pay USD 90 mln to Settle 'Click Fraud' Case

Google has announced that it will pay up to USD 90 million to settle a lawsuit alleging the company had charged but not reimbursed thousands of advertisers for invalid clicks dating from 2002 when Google launched its 'cost per click' advertising program.

Google currently allows advertisers to apply for reimbursement for clicks they believe are invalid. They can do this for clicks that happen during the 60 days prior to notifying Google. Under the agreement, Google will open up that window for all advertisers, regardless of when the questionable clicks occurred. For all eligible invalid clicks, Google will offer credits which can be used to purchase new advertising with Google.

The total value of the credits available to advertisers will be lower than USD 90 million because part of that amount will be used to cover the fees of lawyers, most likely in Q1, who filed the case last year in Arkansas state court. The proposed settlement still requires final court approval.

According to an AP release, the lawsuit, filed by Lane's Gifts and Collectibles on behalf of all Google advertisers, revolves around one of the most sensitive subjects facing Google and Yahoo Inc., which runs the Internet's second largest marketing network. Yahoo, which is also named in the suit, said that it intends to fight the lawsuit's allegations.