Online Advertising Survival: Combating Click Fraud - University of ...

party service that can objectively evaluate how many clicks are legitimate and whatadvertisers should be charged 53 .In 2008, Bigreds.com Inc, a Web site that sells collectible toys and memorabilia suedYahoo for more than $1 million for inflation of advertising fees due to click fraud. Thecontention was Yahoo knew the fraud existed and had the ability to ascertain whichclicks were fraudulent but concealed the facts. Yahoo has yet to respond to the charges.The legal basis for all the lawsuits was breach of contract, negligence, misrepresentation,unjust enrichment and unfair business practices. These legal concepts have beenanalyzed by Kursad Asdemir and Moin A. Yahya, in the July 2006 paper, “Legal andStrategic Perspectives on Click Measurement”. In each of the class action suits, it iscontended that the search engines breached the contracts with the advertisers by billingthem for fraudulent clicks. In the same context, Google is negligent in not doing enoughto stop click fraud when they have knowledge it is occurring. Google was deceptive intheir business practices by billing advertisers for fraudulent clicks and therefore, followedunfair business practices. Lastly, it is argued that Google is enriched at the expense ofthe advertisers due to the billing of fraudulent clicks. Unjust enrichment occurs whenone party gains from another without legal reason 54 . The remedy for unjust enrichment isalways restitution and Google should reimburse the advertisers for the moneys earnedthrough fraud.53 Holahan, Catherine, “Compensating Click Fraud’s Victims”, Business Week,http://www.businessweek.com/technology/content/jul2006/tc20060725_788437.htm54 Common Law Separation Canada.com, http://www.common-law-separation-canada.com/unjustenrichment.htm,Retrieved May 31, 200844