Laws Of .com

Google Settles Click Fraud Suit For $90 Million

Google has agreed to pay $90 million to settle a class action lawsuit that stems from Google’s pay-per click advertising system. The suit was filed earlier this year by Lane’s Gifts in Arkansas, over advertising fraud by outside parties on its site.

The settlement involves legal fees and credits rather than cash payments, and applies to all advertisers who used Google’s per-click advertising system in February 2002 and apply to be part of the class settlement.

Google relies heavily on its pay-per click ads, which are highly vulnerable to fraud. The company claims that only a small percentage of search ads are fraudulent.

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http://www.msnbc.msn.com/id/11734026/