Google is deceiving its customers
into paying for ads they don't want, according to a federal class action
lawsuit filed today by Kabateck Brown Kellner, LLP in U.S. District Court,
Northern District of California in San Jose.
"This debunks Google's carefully cultivated image," said Brian
Kabateck, who is lead counsel on the case and Managing Partner of Kabateck
Brown Kellner.
"Google is hurting its customers on two fronts. Google is not only
taking money out of customers' pockets, it's derailing their advertising
strategies as well."
Kabateck recently won a multi-million dollar settlement from Yahoo! and
was part of an earlier $90 million settlement from Google on behalf of
advertisers who were victimized by "click fraud" to which the company
turned a blind eye.
AdWords is Google's primary advertising program and is the main source
of its revenue. AdWords ads appear on Google.com as well as on Google
partner sites like Ask.com. AdWords ads, however, may also appear on
third-party Web sites, which use AdSense, the other side of the Google
advertising model.
Google charges its advertising customers when someone "clicks" on one
of their ads. During the sign-up process, users tell Google the maximum
that they are willing to pay per "click."
During this process, users encounter two adjacent boxes. Into the
first, customers enter the amount they wish to pay per "click" of an ad
displayed on Google.com. The second box is marked "optional." Into this
box, a user can enter the amount they would be willing to pay per "click"
of an ad appearing on a third party web page. But leaving the box blank
does not prevent ads from appearing on third-party sites. (NOTE: a screen
cap is available upon request.)
Instead, Google places the ads on third-party sites anyway. And users
are automatically charged per click based on the amount they entered into
the first box. This suit arises from the fact that both actions occur
without the user being informed.
Ads on third-party sites are widely-acknowledged to be far less
effective (and therefore less valuable to the advertiser) than ads on
Google.com. Google,
of course, still profits greatly from these ads.
"People go to Google hoping that some of its magic will rub off on
them," Kabateck added. "Instead, Google's sleight of hand deception is
making their money disappear."
Kabateck Brown Kellner, LLP is one of the nation's foremost consumer
law firms. Its clients have won more than $750 million against Coca Cola,
Farmer's Insurance, Eli Lilly and other major corporations. As a
plaintiff's-only firm, Kabateck Brown Kellner is always on the consumers'
side.
SOURCE Kabateck Brown Kellner, LLP
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