Google PPC Settlement

Google Settles Class Action on PPC

by Donna O'Hanlon
of http://www.oyster-web.co.uk

Last updated: 11 Sep 2007

A US state judge has recently approved a $90m settlement from Google for its involvement in click fraud scams.

The decision came about after legal action from Lane’s Gifts and Collectibles, which progressed into a class action suit from over 70 other sources.

Google’s involvement came when the company was accused by several of their advertisers of a lack of vigilance when it comes to ‘pay per click fraudsters’. This results in advertisers being falsely charged for having users directed to their sites.

Advertisers pay search engines every time a user clicks on their ad displayed on the Search Engine – in this case the search engine being Google.

The company has improved security and has did what they can to give Pay Per Click advertisers more confidence by allowing more access to their Google Ad accounts. By doing this, advertisers are able to monitor any discrepancies in click activity.

Under the terms of the settlement, Google must award advertisers $4.50 worth of pay per click credits for every $1000 spent on campaigns.

Joe Griffin, the Miller County Circuit judge, described the decision as “fair, reasonable and adequate”.