May 06 2006

Company files fraud lawsuit against Yahoo

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First, it was google, now yahoo. It seem that the search engines are now a good target for filing click fraud lawsuits.

A company called crafts by Veronica filed a lawsuit against Yahoo last Monday in US district court. According to washingtonpost.com

Crafts By Veronica, which makes fabric-covered photo albums, filed a lawsuit accusing Yahoo of breaching a contract by charging advertisers for pay-per-click ads shown improperly in "pernicious spyware programs" and on low-quality Web sites.

The accusing company claims that Yahoo failed to protect them (the advertiser) from "click fraud" in which ad publishers click on an advertiser's ad to gain more profit at the expense of the advertiser.

Advertisers are normally charged on a per click basis, meaning, the more clicks to the advertisements, the more payments are collected from these advertisers.

[via washingtonpost.com]


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