The CEO of web hosting company AIT speaks of massive organized fraud in pay per click advertising and affiliate marketing networks. AIT is leading a class action lawsuit against Google alleging Google didn't do enough to stop fraudulent clicks in its AdSense program.
Quote: Web-hosting company AIT CEO Clarence Briggs can't tell you much about the company's taking over the lead for Click Defense in a class action lawsuit against Google. "It's a bunch of legal stuff," he says. What he can do is take you on a journey of retailers that sell click fraud software, of affiliate networks set up to dupe advertisers with automated clicks, and computer geeks with mob-like tendencies.
Briggs says AIT has lost up to $500,000 to fraudulent clicks, most which come from over seas IP addresses...
The sheer number of fraud networks that register websites only to display sponsored links that are mechanically clicked (Briggs estimates in the millions) is the prime reason his company decided to go after Google, whom the company accuses of tolerating the fraud...
full article:
http://www.webpronews.com/topnews/topnew...works.html
Quote:AIT Lashes Out At Click Fraud
"I've fought a holy war within myself," said Clarence Briggs, CEO of web-hosting company AIT. He was referring to the soul-testing decision to join and take over the lead in a class action click fraud lawsuit against Google Inc. For Briggs, the head of a multi-million dollar and one of the oldest domain hosting services, it was a decision about whether to become a click-fraud tycoon himself or take measures to combat it.
..he's joined the class action suit in an effort to hold PPC engines accountable. In Briggs' estimation, if the issue of click fraud isn't addressed and if engines continue to ignore issue, the world of e-commerce will crash..
full article:
http://www.webpronews.com/insiderreports...Fraud.html
related topic: Commission Junction Hires Web Detectives
http://community.tuliptools.com/index.ph...069.0.html
Quote:fraudulent clicks, most which come from over seas IP addresses...
I'll back him up on that assertion. Click fraud is out of control.
Quote:fraud networks that register websites only to display sponsored links that are mechanically clicked
Half the web sites in google searches are nothing but a page full of sponsored links
Update: Google has agreed to pay advertisers $90 million to settle a click fraud suit brought by Lane's Gifts in February 2005
Quote:... last February, Google was sued in Arkansas over what is commonly called click fraud. WeÂre very near a resolution in that case, so we thought weÂd offer an update.
WeÂve been discussing the case with the plaintiffs for some time and have recently come to an agreement with them which we believe is a good outcome for everyone involved. As a result, Google and the plaintiffs are going to ask the judge to approve the settlement, which would resolve the case...
Google currently allows advertisers to apply for reimbursement for clicks they believe are invalid. They can do this for clicks that happen during the 60 days prior to notifying Google. Under the agreement with the plaintiffs, we are going to open up that window for all advertisers, regardless of when the questionable clicks occurred. For all eligible invalid clicks, we will offer credits which can be used to purchase new advertising with Google. We do not know how many will apply and receive credits, but under the agreement, the total amount of credits, plus attorneys fees, will not exceed $90 million.
This agreement covers all advertisers who claim to have been charged but not reimbursed for invalid clicks dating from 2002 when we launched our Âcost per click advertising program through the date the settlement is approved by the judge.
full statement:
http://googleblog.blogspot.com/2006/03/u...oogle.html
related topics:
How Click Fraud Could Swallow the Internet http://community.tuliptools.com/index.ph...979.0.html
Google's Recent Missteps and Lack of Communication Irk Investors
http://community.tuliptools.com/index.ph...989.0.html
A related article discusses click fraud and the controversial Lane's Gifts settlement:
Quote:Credits are not enough
Large advertisers might be happy with a credit toward an inevitable spend with a ubiquitous search site but the little guy, waiting for a refund to his credit card, clearly isn't represented in the current fraud acknowledgement to credit system.
A cottage industry has popped up to provide fee-based services to help advertisers seek refunds. The problem is so bad that advertisers are willing to pay a third party to help them collect money in which they are already entitled.
So many advertisers are clearly outraged by the most recent click fraud settlement that it would seem the "do no evil" motto is more meaningless than ever...
full article:
http://imediaconnection.com/content/9816.asp
Update: a group of advertisers is opposing the settlement terms in the $90 million Click Fraud case:
Quote:As an Arkansas judge considers whether to give his final approval for a settlement in a high-profile suit against Google alleging widespread click fraud, a group of plaintiffs is trying to block the deal, saying the search engine has not done enough to stop the deception.
Attorneys for some plaintiffs told the court Monday that Google has failed to exercise "reasonable care" to stem click fraud, which can lead to huge advertising bills but relatively little increase in business in some cases. ...
Some fifty-one plaintiffs have raised objections to the deal since it was announced. Most are smaller advertisers who have complained in court documents that their complaints are being overlooked because they don't have the resources to press their claims...
full article:
http://www.ecommercetimes.com/story/BQS2...ment.xhtml