Slashdot Mirror


Google Sued Over Click Fraud

tanveer1979 writes "A seller of online marketing tools has sued Google over click fraud, accusing it of failing to protect clients from spurious clicks over web ads. The suit claims damages of $5 million and is seeking class action status. Sites get money per click from the advertisers. Rival companies of the advertiser may employ people to repeatedly click on the advertisers link on Google costing them large amount of money. Google denied the allegations. From the article: 'We believe the suit is without merit and we will defend ourselves against it vigorously.'" Interesting turnaround.

34 of 285 comments (clear)

  1. Not much of a turnaround. by Sebastian+Jansson · · Score: 4, Interesting

    Google sues people for click inflating, for the sake of their customers.

    Google's customer sues Google for not doing enough.

    1. Re:Not much of a turnaround. by CaymanIslandCarpedie · · Score: 5, Insightful

      No, no, no ;-) TFA points out they are being sued by Click Defense Inc. They are not a customer or a client. They sell software designed to prevent click fraud!

      Click Defense Inc's business plan:
      1. Build software which may or may not prevent click fraud
      2.Approach Google about using said software.
      3.Google says no thanks.
      4.Sue Google for not buying your product (I mean protecting customers)
      5.???????
      6.Profit!
      7.???????
      8.Burn in hell for being a scum sucking ass-clown

      --
      "reality has a well-known liberal bias" - Steven Colbert
    2. Re:Not much of a turnaround. by bigman2003 · · Score: 5, Insightful

      Let's say you are a company. And you hire someone to do marketing- maybe hand out expensive brochures and free samples.

      Well, your competitor keeps going back to the booth and taking your brochure and free samples. Then he throws them away, and goes back for more.

      Do you sue the person you hired to work at the booth?

      No...you figure out a better way to do it...or you fire the person at the booth and hire a big beefy guy who will make sure it is '1 per customer.' (Yet, he scares away all of the customers)

      You know the business model going in...how can you sue?

      --
      No reason to lie.
    3. Re:Not much of a turnaround. by haagmm · · Score: 5, Funny

      You could say go to google. google Click Fraud and click "Click Defense"'s add on the right hand side 10-20 times just for added good mesure :p

    4. Re:Not much of a turnaround. by CaymanIslandCarpedie · · Score: 4, Informative

      I like the idea, but it might give them more ammunition in the court case. Instead it seems Click Defense has a 877 number (same as 800 meaning they pay for the phone call). The number is: 877-872-5772. Feel free to just give them a call and ask about the lawsuit or whatever. I wonder if they'll sue the telcos for not screening real customers from the 877 number ;-)

      --
      "reality has a well-known liberal bias" - Steven Colbert
    5. Re:Not much of a turnaround. by CaymanIslandCarpedie · · Score: 3, Funny

      Wonder if a telephone number has ever been /.ed before ;-)

      --
      "reality has a well-known liberal bias" - Steven Colbert
    6. Re:Not much of a turnaround. by Greatmoose · · Score: 5, Funny

      Yes, it has. Back when EPIII was coming out, there were a bunch of fans lined up at the wrong theater weeks ahead of time, and somebody here on slashdot posted the number to the pay phone outside the theater. Well, in very short order, it was constantly busy. It was quite funny.

      --
      Clearly I forgot to equip my +5 Codpiece of Karma.
  2. Deep Pockets by Nick+Driver · · Score: 3, Interesting

    Since Google now has pretty deep pockets, you can expect an endless stream of all kinds of wierd-ass lawsuits filed against them.

  3. wait... by tiberiandusk · · Score: 3, Insightful

    wasn't there an article a while ago about how google was trying to stop this since they were losing a ton of money to fake clicks? i think every online advertising company in the world has been working on this problem for a long time. suing them won't fix the problem but it will get all those lawyers a lot of money.

    1. Re:wait... by surprise_audit · · Score: 3, Informative

      Yeah. That was what was being referred to in the Interesting turnaround link right at the end of the summary....

  4. Not google's fault by Arthur+B. · · Score: 4, Insightful

    They don't have to sued Google over this, but the people commiting click fraud... I mean, they sign a contract in which they agree to pay for each click, it's never mentionned that Google will ensure that all clicks are legits... I don't think they have the slightest chance to make a point in court. Now Google could prrobably provide protection, but they won't have to. Eventually, protection (unique clicks, time spent on site etc) will arise with competition on ad placement as a required service.

    --
    \u262D = \u5350
    1. Re:Not google's fault by Bob3141592 · · Score: 3, Interesting

      What ever happened to personal responsibility? Is the legal system so distorted that responsibility isn't a factor? Plus, isn't real financial interest a requirement to bring a suit?

      I could see that if Google promised click verification in their contract with the advertisers, those advertisers could sue Google, if they could show the clicks are fraudulent. But I can't sue Google, as I have no financial interest in that transaction.

      Let's say I own a house, but the front door isn't metal and the lock isn't the most secure possible. Can I be sued by my neighbor because some thief breaks into my house, on the grounds that this promotes theivery and puts his house at greater risk? Meanwhile, the thief isn't at any jeopardy.

      The law doesn't work that way, and lawyers who try to make it sound like it does should be put out of work.

      Hey, can I sue the lawyers making this claim, because their ridiculous suit may make my online activity more expensive? Is there a lawyer in the house?

      --
      In theory, there's no difference between theory and practice. In practice, there is.
  5. Previous suit will help... by jdreed1024 · · Score: 4, Interesting
    Interesting turnaround.

    Not really. Google sued people who were artificially inflating their clicks. Now, someone is saying Google does nothing about click inflation. Who knows the specific of this individual case, but clearly Google has done *something* about click inflation.

    --
    There is no sig, there is only Zuul.
  6. what exactly google does to stop fraud? by cytopia · · Score: 3, Interesting

    Does anyone know how does google check for "fake" clicks?

    1. Re:what exactly google does to stop fraud? by -brazil- · · Score: 4, Insightful

      I doubt they're telling anyone, since it would be easier for the fraudsters to circumvent the checks if they knew the exact method.

      The obvious measure would be statistical analysis to see whether some IP addresses are generating an excessive amount of clicks, especially on the same ads.

      --

      The illegal we do immediately. The unconstitutional takes a little longer.
      --Henry Kissinger

  7. Failing to prevent? by zensufi · · Score: 4, Informative

    In other news, Sears is being sued for failing to conduct background checks on the purchasers of air conditioners. It seems foreign assassins have been dropping them out of windows and killing unsuspecting Americans.

    Failing to prevent? I mean, come on. This only makes sense if Google signed a contract with the advertisers saying they would implement measures to prevent this.

    --
    I have two eyes, I have two feet.
  8. 1-800 by Matt+Clare · · Score: 4, Insightful

    I hope this company doesn't have a 1-800 number:

    "Ma' Bell didn't tell all the callers that they could only dial our number if they were going to buy something".

    --
    .\.\att Clare
    1. Re:1-800 by Anonymous Coward · · Score: 3, Informative
  9. I'm confused... by AnObfuscator · · Score: 5, Insightful

    ok, so based on the second link to the previous slashdot story (http://yro.slashdot.org/article.pl?sid=05/04/19/1 927212&tid=123), doesn't that prove in Google's favor that Google *is* taking click fraud seriously? Thus, doesn't that conclusively demonstrate in Google's favor that "Click Defense Inc." is just wrong?

    And their main product is to prevent, you guessed it, Click Fraud. Hmmmm, a few minutes ago I didn't know that such a product existed, but now that they've sued google, I do. double hmmmm hmmmm.

    Some Executive somewhere: "Google is getting sued because they don't protect us from 'Click Fraud', whatever that is! that could cost us lots of money! What can I do to protect myself? Let me ask Google. Oh, look who is on the sponsored links, clickdefense.com. Oh, their product saves me! yay!"

    I smell a large omnivorous rodent of the genus Rattus...

    --
    multifariam.net -- yet another nerd blog
  10. Sneaky by QMO · · Score: 3, Insightful

    IMO
    This is a publicity stunt.
    Click Defense is suing Google to get people to think about click fraud, so they'll buy software from Click Defense to save themselves.

    --
    Exam 4/C again. Maybe I'll do better this time.
  11. Proof of Fraud on Google's Own Website!!! by Zemplar · · Score: 5, Funny
  12. IMHO by Darth+Maul · · Score: 3, Insightful

    In my humble opinion, any lawsuit that has the words "failing to protect" in its description is automatically bunk.

    --
    --- witty signature
  13. Hmmm.... if my advertising is costing me money... by utmslave · · Score: 4, Insightful

    I change my advertising methods. If you bought a full page in the New York Times for advertisement and didn't see an increase in business that coincided with the amount you spent (assume that a rival company with deep pockets purchased about 100,000 subscriptions to the Times to inflate the ad placement cost), you would change your ad placement strategy. This is no different. If you want to sue someone, you need to sue the end-clicker that is causing the inflated ad cost or find another marketing plan.

    .sigs cause cancer!

  14. Re:Hmmmmm.... by uioreanu · · Score: 3, Interesting

    google does not employ any click patterns analysis, and fraud you have to both expect, plan, pay for, and fight against; mostly by yourself.

    I had a one week adwords saga. The bottom line was that if fraud exists, and the claim is right they do react, but one has to act on it, not wait for the PPC carrier to discover it.

    Then since this core flaw exists, great media-opportunist companies appear and sue google in order to gain media exposure. this kind of news should become no news soon enough!

    --
    cut this signatures madness. stop reading them now!
  15. TOS problems by frostman · · Score: 5, Insightful

    I'm not convinced Google is trying as hard as it should to combat click fraud, and I know how awful their customer service is, but...

    When you sign up for AdSense or AdWords, you do agree to their terms of service, including things like (paraphrasing here):

    • They pay you whatever they think is fair.
    • If they suspect fraud, they do whatever they like (including not paying you); if you suspect fraud, they'll "work with you" to investigate it.
    • On AdWords, you pay for whatever clicks they say you got.
    • On AdSense, they pay you for whatever clicks they say you got.
    • On AdSense, they can advertise their products on your site as much as they want, for free.
    • Their records are authoratitive (though largely secret), yours are corruptible (though possibly interesting).
    • Evil/fraud is what Sergey says is evil/fraud.
    • All your base yada yada...

    Seriously, Google ads have some great advantages on both sides, but if you go down that path you should not bet more money than you can easily afford to lose. You've basically agreed up front that they're always right - and yeah, maybe you can challenge that in court, but don't forget they have twenty lawyers for every click-fraud investigator. :-)

    --

    This Like That - fun with words!

  16. I am safe from click fraud by Georules · · Score: 3, Funny

    with my Visa CapitalOne Check Card. It's in my wallet.

  17. Re:It's a funny old world, innit by kebes · · Score: 5, Insightful

    I think the company in question, ClickDefense must not be doing very well, and is using this as a last-resort money-grab to stay alive (wild speculation, I know!). Why do I say this? Well, it seems like corporate suicide for a company to admit that their product doesn't work at all. They are a company that sells click-fraud detection tools, so that other companies can prevent click-fraud and thereby increase their return-on-investment for all those advertising dollars.

    But if their product works properly, then they should be properly protected, and they wouldn't need to complain to Google that they are getting ripped off. They would just use this technology on themselves, and figure out a way to prevent this fraud (and then sell the technique to others of course). Part of this 'technique' might just be to accurately determine which advertising-supplier has the lowest fraud-rates, etc. But by telling google that they are getting frauded, they are basically admiting their system doesn't work.

    Of course, they will claim that they are using their technology to detect the fraud occuring on google's ads... this is, after all, the very point of their product, right? Then other people will buy their product. But 'going public' in this way doesn't make sense. If google cleans up their act in a public and verifiable way, then ClickDefense's product becomes irrelevant. Basically companies won't buy their product/services, because they will be happy knowing that Google is taking care of the situation. They don't need to pay ClickDefense for special knowledge about click-fraud: ClickDefense appears to be making this information public!

    If this is a publicity stunt, I think it is a bad one. Frankly it makes ClickDefense's product and services appear rather pointless. I question the long-term viability of this company!

  18. Got extortion? by raitchison · · Score: 5, Funny

    This seems like a rather obvious case of extortion if you ask me. I can picture the "negotiations" now.

    Click Defense: Buy our software

    Google: No thanks, we're good

    Click Defense: Buy it or we'll file a lawsuit and make lots of public statements saying you are allowing your customers to be ripped off (reminding them that people beleive anything they read on the IntArweb)

    Google: Pack Sand

    Click Defense: You'll regret this, it'll now cost you 10x as much as our shitty software

    Why don't we hold companies and individuals criminally resposible for this kinds of abuse of the legal system?

  19. Re:Hmmmmm.... by qodfathr · · Score: 4, Interesting

    I've been a vicitim of click fraud more than once. Sometimes, Google sees it and sends me a credit. (And by that I mean I did not notice it or report it -- they told me; that was early on in my advertising days, however.)

    I have not had an automatic credit like that in a very long time, but my logs are indicative of click fraud. You can write to Google and get a credit, but, for some ad campaigns, it's just not worth it -- well over 90% of the clicks can be fraudulent. The time invested to keep getting credits may out weigh the value of the campaign. YMMV.

    --
    Yes, it's true. This man has no dick.
  20. Google is Public; Make Yourself Rich! by qodfathr · · Score: 4, Interesting

    Now that Google is public, I believe that Click Fraud will continue to increase. Think about it for a second:

    1. Buy Google stock.
    2. Perform random searches on Google.
    3. Click every ad.
    4. Google makes $$$ for those clicks.
    5. Stock price goes to $300, $400, ...
    6. Profit!

    It's hard to imaging any other company in which you can invest and, with so little effort, produce revenue for them. Hell, you could be doing something else at the same time! I bet while watching "Dancing with the Stars" you could flow several grand into Google's bank account. If even a small percentage of Google shareholders do the same, it's just like printing money.

    --
    Yes, it's true. This man has no dick.
  21. A flawed business model by erroneus · · Score: 4, Interesting

    Counting clicks as a means of collecting revenue is a flawed business model. It sounds and seems more "precise" somehow, but as it has been pointed out, various forms of employment has actually arisen in low-income countries where people just come in and click away for cash. It's insane and more importantly, easily exploitable.

    Other advertising media use demographic polls to determine the approximate number of eyes and ears on their material. This is a fair means by which the value of advertising can be measured. It means the media will have to pay a reliable source to collect this information and all that but it's not as exploitable as hiring clickers in the 3rd world country to run up the advertising costs of a competitor.

    There's still room for fraud and falsification but the target for such accusation is much easier to define and because of this, they [the poll people] are more likely to protect themselves with auditing and tracking measures should they be accused of, say, siding with Yahoo! or Google when reporting numbers. It would more or less absolve the advertiser and the medium from this problem and actually simplifies the business model considerably.

    The internet advertisers should take a lesson from the rest of the world and simply go with what works. People will cheat every chance they get. It's clear and obvious. So you just have to find ways to reduce that risk.

  22. Bunch of Ass Clowns by Comatose51 · · Score: 4, Interesting

    Have you guys read the site? These guys are a bunch of ass clowns.

    http://www.clickdefense.com/terms_of_services.html

    "RISK. YOUR ACCOUNT AND THE SERVICE IS PROVIDED TO YOU ON AN "AS IS" AND "AS AVAILABLE" BASIS. Click Defense, ON BEHALF OF ITSELF AND ITS DISTRIBUTORS, ADVERTISERS AND SUPPLIERS, DISCLAIMS ALL WARRANTIES AND CONDITIONS, EXPRESS OR IMPLIED, ARISING BY LAW OR OTHERWISE, WITH RESPECT TO YOUR ACCOUNT AND THE SERVICE (INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT)."

    First, you can't disclaim expressed warranties. Also kind of hypocritical that they disclaim all responsibility for their product and turns around and sue Googles for what amounts to a warranty issue.

    Very unprofessional. Obviously a bunch of dumbasses.

    --
    EvilCON - Made Famous by /.
  23. Re:Mod Up: Happy Activity for slashdotters by CaymanIslandCarpedie · · Score: 3, Informative

    Actually the company sueing google isn't listed in google adds anymore it seems. So clicking on those in the link you posted will just hurt innocent companies which aren't sueing.

    While I'm reluctant to post thier website as I don't want to give them more publicity, here is the website of the company sueing (not those listed in google ads).

    As I've said below, if you want to screw with them calling thier 877 number would be better as it won't hurt other companies, won't help thier court case, and 877 numbers actually cost more than a click ;-) Just give em a call and ask about the lawsuit or tell them how your day is going so far, or whatever ;-) Again the number can be found on thier website but if you don't want to visit that it is 877-872-5772

    --
    "reality has a well-known liberal bias" - Steven Colbert
  24. Re:Hmmmmm.... by qodfathr · · Score: 5, Interesting

    First, you have to understand how Google runs your ads. You set a daily budget, and once that budget is exceeded, your ad stops. You get a new daily budget a 'midnight' (adjusted for locality, of course).

    So, there are times when, right at midnight, there is a sudden and dramatic rise in the number of queries which would produce my ad, and my CTR goes to 100%. They all come from the a block of IP addresses owned by one of my competitors. Sometimes they come somewhat more scattered in the IP address space, but a few whois searches reveals that all of the offending IPs are related (through business ventures, or have the same registered mailing address, etc.)

    They click the ad until my daily budget is drained, and then my ad stops for the day.

    --
    Yes, it's true. This man has no dick.