March 27, 2007 11:44 AM PDT

Yahoo click fraud settlement gets final OK

A federal judge in San Jose, Calif., has given final approval to a settlement in a class action lawsuit over click fraud that requires Yahoo to pay nearly $5 million in attorney fees and give full credits to advertisers dating back to 2004.

The judge's action on Monday settles claims by Checkmate Strategic Group that Yahoo charged advertisers for clicks on online ads that were fraudulent or done in bad faith.

The settlement agreement was given preliminary approval by the court last summer. However, attorneys involved in a class action suit over click fraud in Arkansas contested the settlement arguing that Yahoo was not responding to the Arkansas lawsuit in good faith when it was settling the case in California. The California settlement releases Yahoo from all similar click fraud claims against it in other actions, including the Arkansas litigation.

The "final approval of the settlement validates the strength of Yahoo's click-through protection systems, and our commitment to delivering a quality experience to both our advertisers and our consumers," said Reggie Davis, Yahoo's new vice president of marketplace quality. "Our commitment does not stop here. Quality is a top priority for Yahoo, and we have a clear road map for how we're going to create the highest-quality search-advertising network in the industry."

An Arkansas judge gave final approval last July to a $90 million settlement Google reached with lawyers for Lane's Gifts & Collectibles and Caulfield Investigations. In that settlement, Google is to pay $30 million for lawyer fees and $60 million in ad credits to affected advertisers. Opposing attorneys also challenged that settlement as being inadequate compensation.

Click fraud typically occurs when ads are clicked on by humans or automated software to either boost the revenue to the Web sites they appear on or to deplete the ad budget of the marketer by rivals who may want to acquire the keywords themselves.

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Pay Per Click is a big loser for many large ticket items like we sell.

We sell medical mobility products. Most of the people visiting our site are using it for a catalog never intending to buy.

I think there is a lot of waste and fraud with pay per click for many products and services on the web effecting a large percentage of companies.

Google and Yahoo are aware of this and they have the data and have not released this data to the customers.

Do you think google/Yahoo is going to admit that a large percentage of poeple doing PPC are wasting their time and money? NO WAY!

I think people are figuring this out now in a big way. That?s why Pay Per Action is being offered by google.

Google/Yahoo know the secret is getting out now. If people knew what google and yahoo know they would not even try PPC for many products people are trying to sell on the web.

The word is getting out on this and will soon shock the PPC biz and the big search engines. Pay Per Sale will save google and yahoo and others will follow.

It will take a while but the pain for the publishers and google/yahoo will be worth it.

The big secret is now being exposed and will save many of the advertisers and google/Yahoo.

Thank God!
Posted by hlawton55 (3 comments )
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Click fraud is underestimated by web-traffic auditors. The fraud is deceptively downplayed by major financial beneficiaries and their small time accomplices or affiliates. Big or not, no one is immune to click fraud. There is mounting unease over click fraud. By some estimates, click fraud could be over sixty percent. However, even one percent of $90 billion of global 2008-2009 Internet ad spend is too high, mainly because advertisers are still deceived, overcharged by millions and thus defrauded every day.

Read how, for example, "Yahoo protects online fraudsters, locks out legal ethical experts," web links here <a class="jive-link-external" href="http://www.networkworld.com/community/node/29113" target="_newWindow">http://www.networkworld.com/community/node/29113</a> , <a class="jive-link-external" href="http://tyneham.blogspot.com" target="_newWindow">http://tyneham.blogspot.com</a> , <a class="jive-link-external" href="http://tyneham.newsvine.com" target="_newWindow">http://tyneham.newsvine.com</a>
Posted by tyneham (16 comments )
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