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 Purchased Ads on parked domains

A class-action lawsuit filed in May 2006 against Yahoo! Inc. accused the company of engaging in "syndication fraud" against advertisers who pay Yahoo to display their ads on search results and on the Web sites of partner pages. The suit claims that Yahoo also displayed the ads via spyware and adware products and on so-called "typosquatter" web sites that capitalize on misspellings of popular trademarks or company names.

For more information see the Technology & Marketing Law Blog: Yahoo "Syndication Fraud" Lawsuits--Crafts by Veronica v. Yahoo and Draucker Development v. Yahoo / Search Engine Advertiser Litigation Updates

Now, Google has also been hit with a lawsuit for the alleged sale of "low quality" ads on parked domains and error pages. The complaint alleges  that Google is guilty of "unjust enrichment" by promising high-quality ad placements and then serving a substantial portion of ads on low-quality sites. Plaintiff Levitte claims that 16,3 % of all the clicks in his campaign came from such sites, but not a single one of those clicks led to a conversion. The suit seeks class-action status for everyone in the US with an AdWords account over the last four years.

One week later, online retailer RK West filed a similiar lawsuit against Google. The complaint alleges that the company purchased ads without realizing they would appear on parked domains.

See Levitte v. Google (complaint and Justia page) and RK West v. Google (complaint and Justia page).




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