Out-Law / Your Daily Need-To-Know

Google has brought an action against an internet sales and marketing company, accusing the firm of fraudulently generating revenue by clicking on text ads displayed on its web site under the search engine's AdSense scheme.

The AdSense system allows advertisers to display targeted ads on content related web sites 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.

However, the AdSense scheme is open to abuse by web site owners who, keen to boost the fees repaid to them by Google, try to ensure that the adverts displayed on their site are clicked as often as possible. As a result, the search engine's AdSense program policy states:

"Any method that artificially and/or fraudulently generates clicks is strictly prohibited. These prohibited methods include but are not limited to: repeated manual clicks, incentives to click, using robots, automated clicking tools, or other deceptive software. Please note that clicking on your own ads for any reason is prohibited, to avoid potential inflation of advertiser costs."

Internet marketing outfit Auctions Expert International appears to have fallen foul of these rules, following the filing of what is thought to be the first "Click Fraud" action in the Superior Court of Santa Clara County.

The action, filed on 15th November, accuses the Houston-based Auctions Expert of joining the AdSense program but then "flagrantly" abusing it by clicking on the targeted ads displayed on its web site.

"These clicks were worthless to advertisers, but generated significant and unjust revenue for defendants," says the complaint, according to CNET News.com.

"We have sophisticated technology that detects and eliminates fraud," Google spokesman Steve Langdon told CNET. "This lawsuit against Auctions Expert demonstrates the success of our antifraud system and that we will take legal action when appropriate."

Auctions Expert has made no comment on the suit so far.

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