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Google subject to class-action for alleged fraud

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Posted July 19, 2008 by admin in News

Google on Friday was sued for fraud, business code violations, and unjust enrichment, claims arising from the company’s alleged sale of low-quality ads.

In the parlance of online marketing, “low-quality ads” refers not to shrill infomercials but to ads that generate a poor response or show a poor conversion rate due to problems with placement, audience targeting, or related factors.

The class-action lawsuit was filed in U.S. District Court in San Jose, Calif., by lawyers from San Francisco-based Schubert Jonckheer Kolbe & Kralowec. The plaintiff is attorney Hal K. Levitte, who advertised his legal services though a Google AdWords pay-per-click campaign last year.

According to the complaint, the “Levitte International” online ad campaign ran from June 1, 2007, through August 18, 2007, and received 202,528 impressions from parked domain pages — placeholder Web pages with auto-generated links related to a pre-determined search keyword or the hosting domain name.

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