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How serious is problem? It’s hard to judge exactly, but click fraud is commonly estimated at 20% to 35% of all PPC ad campaigns.
A recently launched lawsuit alleges that Google is aware of magnitude of click fraud and does not do enough to alert advertisers of problem.
The class action suit launched by Click Defence says that "Google has an inherent conflict of interest in preventing click fraud since it derives same amount of income from each fraudulent click as it does from each legitimate click." The $10 million lawsuit quotes Google Chief Financial Officer George Reyes as saying that click fraud is “the biggest threat to Internet economy.”
Click Defense is a Colorado company specializing in click fraud detection. They claim that they themselves became a victim of click fraud when they advertised with Google’s Adwords program this year.
They are seeking damages for breach of contract, negligence, unjust enrichment, and unfair business practices.
A Google spokesman said that case is unmerited and that Google will defend itself “vigorously.”
Copyright 2005 by Ross MacIver
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