On June 24, 2005, a lawsuit was filed against Google for alleged click fraud on the Adwords pay-per-click program. The Plaintiff, Click Defense, claims Google failed to enact appropriate measures to guard against fraudulent clicks resulting in unwarranted marketing fees. Click Defense claims it has lost over $5 million to click fraud.
Click Fraud
Click fraud is a term with a unique meaning on the Internet. It refers to the deliberate clicking of pay-per-click advertisements by users that have no intent of actually making a purchase. It is common knowledge that unethical companies will set up click centers oversees where individuals are paid nominal wages to click on certain ads. Alternatively, companies will use programs called click bots that automatically search out ads and do the same thing. The end result, of course, is a bevy of clicks that drain advertising budgets.
Google claims it takes appropriate precautionary measures. This claim, however, is often met with a snicker since the sole source of revenues for Google is advertising. This causes an inherent conflict of interest since Google needs to maximize clicks to generate revenues. As a publicly...
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