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04|25|2008 04:22 pm EDT

Google Sued for Adwords Fraud

by Chad Kettner in Categories: Legal Issues

Kabateck Brown Kellner, LLP, a law firm in Los Angeles, California, has filed a lawsuit claiming that Google is deceiving its customers into paying for advertisements they don’t want.

Google, the law firm contends, is cheating advertisers by charging for ads that are placed on third party websites without the Adwords user being informed.

During this process, users encounter two adjacent boxes. Into the first, customers enter the amount they wish to pay per “click” of an ad displayed on Google.com. The second box is marked “optional.” Into this box, a user can enter the amount they would be willing to pay per “click” of an ad appearing on a third party web page. But leaving the box blank does not prevent ads from appearing on third-party sites.

Instead, Google places the ads on third-party sites anyway. And users are automatically charged per click based on the amount they entered into the first box. This suit arises from the fact that both actions occur without the user being informed.

Ads on third-party sites are widely-acknowledged to be far less effective (and therefore less valuable to the advertiser) than ads on Google.com. Google, of course, still profits greatly from these ads.

“Google is hurting its customers on two fronts,” said Brian Kabateck, the lead counsel and Managing Partner of the law firm. “Google is not only taking money out of customers’ pockets, it’s derailing their advertising strategies as well.”

Kabateck Brown Kellner is one of the nations foremost consumer lawsuits and is well-known for reaching large settlements. They recently won a multi-million dollar settlement from Yahoo and were part of a $90 million settlement from Google on behalf of advertisers who were victimized by click fraud.

While Kabateck have won numerous cases, it is uncertain whether this case has much merit to it or not. While uneducated Adwords users may not realize they are being charged the standard rate for ads on third party webistes, it seems apparent to most people who have familiarized themselves with Google’s system.

Kabateck Brown Kellner is always on the consumers side of these types of issues, yet it can be difficult to measure the seriousness of their lawsuits, especially considering the fact they are suing Apple for saying the new iMac is improved, when it supposedly is not.

[via PR Newswire – Kabateck Brown Kellner press release]

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2 Comments

Pay Per Click Manangement

June 10, 2008 @ 10:59 am EDT

Really good info about Google ad words costumers. It

expertppc

June 21, 2008 @ 11:42 am EDT

This is news that I never read before.
Maybe that’s the error of Google bots,
which crawl and put wrong ads into the sites.

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