//Class action accuses Google of unduly suspending refunds for advertising fraud
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Class action accuses Google of unduly suspending refunds for advertising fraud

 

 

In 2017, Google agreed to reimburse selected advertisers with the help of DoubleClick Bid Manager (now called Display & Video 360). were served on sites with fraudulent or invalid traffic. Hundreds of buyers would have been eligible, but a class action brought by AdTrader claims that Google improperly withheld these repayment payments, according to Wall Street Journal (WSJ)

. agreement on reimbursement of "platform fees" When the fraud was discovered, Google announced the reimbursement of its "platform fees", which generally represent between 7% and 10% of the total value advertising expenses. Some marketers have expressed dissatisfaction with the refund system. However, according to the WSJ, "Google said that it was not able to return the money already spent from its purchasing tool to third-party online advertising platforms where publishers were selling advertising space ".

AdTrader brought a class action lawsuit against Google in federal California court, arguing that Google had "illegally appropriate" refunds advertised to advertisers. The lawsuit alleges that Google has never actually paid back a refund, after claiming money from publishers accused of inflated or fraudulent traffic.

Alleged failure to pay $ 75 million. The unsealed court documents reviewed by the WSJ apparently indicated that Google had not paid up to 75 million potential refunds related to "advertising markets that Google itself owns and controls totally: AdX and AdSense. "

Various third-party analysts and surveillance firms have estimated advertising fraud at more than $ 16 billion worldwide. Other reports have different numbers. Various US estimates, including those of Association of National Advertisers claim that brands will lose between $ 6 and $ 7 billion this year in fraudulent (non-human) traffic.

[19459002Whyshouldyoucare? The AdTrader trial is still ongoing and seeks class certification for agencies and advertisers who have used DoubleClick Ad Exchange (AdX) and AdSense during the reporting period. It also claims triple and punitive damages, as well as injunctive actions against Google. AdTrader accuses Google of being a monopoly and is positioning itself as a defender of the interests of advertisers. You can read more about the legal and factual statements in the blog post and the AdTrader court complaint . [ pdf ).

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About the Author

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Greg Sterling is a collaborative editor at Search Engine Land. He writes a personal blog, Screenwerk on the links between digital media and consumer behavior in the real world. He is also Vice President of Strategy and Knowledge for the Local Search Association. Follow him on Twitter or find him on Google+ .