Google’s AdSense Service allows advertisers to display targeted ads on websites in return for the payment of a fee to the search engine each time an internet user clicks on one of their ads. Google then repays part of the fee to the web page owner.
This is different to Google’s AdWords service, which allows advertisers to sponsor particular search terms so that, whenever that term is searched in Google, the advertiser’s link will appear next to the search results.
However, the AdSense scheme is open to abuse by website owners who, keen to boost the fees repaid to them by Google, try to ensure that the third party adverts displayed on their site are clicked as often as possible. This practice, known as ‘click fraud’ is a serious problem for search engines, with estimates putting the amount of click fraud at anything between 5 and 20% of all clicks, according to reports.
Google does allow AdSense subscribers to seek reimbursement for those clicks that they believe to be invalid, but they have to notify Google within 60 days of the fraudulent click being made.
Google, together with Yahoo!, Lycos and other search engines, was sued in February last year by a group of businesses, led by Arkansas-based Lane's Gifts and Collectibles. The firms alleged that they had been charged for invalid clicks, but not reimbursed by the search engines.
However, according to a blog posting by Nicole Wong, associate general counsel at Google, the parties are now ready to settle the action, and are seeking judicial approval of the agreement.
This, in general terms, will extend the 60-day notification window available to AdSense users from the launch of the ‘cost per click’ program to the date the settlement is approved by the judge. Those advertisers who can show that they have been charged and not reimbursed for invalid clicks in that period will be entitled to credits that can be used to buy new Google ads.
The total amount payable by the firm – including legal fees – has been restricted to $90 million.
Yahoo! is to continue to fight the suit, according to reports.
