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Sitemap Aug-Archive-05 Google Sued Over Claims Of Excess Advertising Fees

Google Sued Over Claims Of Excess Advertising Fees  

Google Inc. is being sued over accusations that it overcharged advertisers who use the Web search giant's paid search advertising program, which accounts for the vast majority of Google's revenue. The class-action suit, filed in State Superior Court in Santa Clara, California, accuses Google of charging in excess of advertisers' daily budgets, under which Google allows an advertiser to limit how much it spends each day.

Google offers two paid search advertising services. The AdSense system allows advertisers to display targeted ads on content related websites in return for the payment of a fee to Google 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.

Internet search advertising is Google’s biggest money-earner, accounting for the bulk of the $1.384 billion generated by the company in the second quarter of this year.

The suit, filed by CLRB Hanson Industries LLC and others, also alleges that Google has not reimbursed what it says are unlawful charges, and has disputed advertiser complaints. It has been sued before over Click Fraud, a practice of using automated software to click on a company's ads. The latest lawsuit appears to be a different problem.

Google spokesman Steve Langdon told Reuters: "The claims are without merit and we will defend against it vigorously."

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