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Lahle Wolfe

Class Action Lawsuit Launched Against Google for AdSense Fraud

By , About.com GuideJuly 23, 2008

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Kabateck Brown Kellner LLP of Los Angeles (KBK), has filed a class action suit in U.S. District Court for the Northern District of California against Google. The suit alleges that Google has mislead advertisers by deliberately using “parked websites” to create an illusion of the number of paid ads being placed, and for failing to disclose click-through information on customer bills, thereby inflating AdSense Profits.

Parked websites are despised by Internet consumers and advertisers alike. Yet these websites frequently show up in Google search engine returns (remember, Google has the power to rank sites and ensure that these parked sites appear so as to benefit Google), tricking consumers into clicking through to the websites.

A parked website is one that exists only to show ads, offering little, if any content of value to consumers. Parked sites often grab teasers from other websites and news sources to fool “robots” into thinking there is content. While these “spam” sites are not illegal, they are often banned. Now, Google has been accused of placing AdSense ads on these sites, knowingly defrauding paying advertisers who think their ads are going on quality sites. To make matters worse, paid “clickers” visit these parked sites and click on ads to generate traffic that the advertising customer must pay for, but without any intention of ever making a purchase.

According to Alfredo Torrijos, a KBK associate, "Our biggest problem with what Google is doing is that they hide where these clicks are coming from. Not only are they not telling their customers where their ads are being placed, but the customer has no idea from reading their monthly bill where their ads are being exported to.” He also states that he believes it is small business owners who are taken advantage of most often.

If you participated in Google’s AdSense program between July 2004 and July 2008, you may be able to join in this class action suit. To have a lawyer evaluate your claim at no cost or obligation you can send your complaint to LawyersandSettlements.com, or contact your own business attorney.

More Information on Internet Advertising

Source: Paul Halpern. LawyersandSettlments.com. “Brian Kabateck and Alfredo Torrijos: Going after Google.” July 23, 2008.

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