Google settles with advertisers over click fraud

Google"s $90 million settlement to advertisers over alleged click fraud has been approved by a US court.

The search engine giant was accused of not taking action to filter out fraudulent clicks, which drove up advertisers" expenses while benefiting Google.

Click fraud occurs when an automated programme clicks on a product advertised on a Google page, making it look as if it were a legitimate human click. As a result advertisers pay for each click unless it is proved to be fraudulent.

Under the terms of the payout Google will have to pay claimants $4.50 for every $1,000 of advertising spent with the company over the past four-and-a-half years.

Google claims that 19 out of 20 of its biggest advertisers have agreed to the terms of the settlement. Around 70 companies joined the case, which began in January 2005 when Lane"s Gifts and Collectables questioned Google over its advertising system.

The company generates most of its revenue from pay per click ads but says it has revised its system in a bid to reduce the frequency of click fraud.


© Adfero Ltd

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