Settlement Near in Google Click Fraud Case
Speaking of click fraud, Google has announced a settlement proposal in a case brought by a company, Lane’s Gifts, an advertiser using Google’s AdWords service. As of this writing, the settlement has yet to be approved by the judge in the case.
The settlement includes several important provisions:
- Google previously would only consider click fraud complaints that covered the 60 days prior to notification of the suspected events. This time limit has been lifted entirely.
- Credits for fraudulent clicks will be compensated for with a credit for additional Google services, not cash or equivalent refunds.
- The settlement covers advertisers who have claimed uncompensated click charges from 2002 to the date of settlement.
More information can be found on the Official Google Blog.
While this case and settlement indicates that there is incentive for search engines to improve click fraud detection/prevention, one could also cynically interpret the settlement as a cap on liability. While I believe that Google will take the high road of continued development, this settlement will likely mollify some of the bearish Google investors concerned about the damage click fraud could do to the company’s bottom line.
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