Google offers two paid search advertising services. The AdSense
system allows advertisers to display targeted ads on content
related websites 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.
Internet search advertising is Google’s biggest money-earner,
accounting for the bulk of the $1.384 billion generated by the
company in the second quarter of this year.
It has sued and been sued before over Click Fraud, a practice of
using automated software to click on a company's ads. The latest
lawsuit appears to be a different problem.
According to Reuters, a class action has been filed in Santa
Clara Superior Court that accuses the search engine of charging
advertisers more than the daily limits that the system lets
advertisers choose.
The suit, filed by CLRB Hanson Industries LLC and others, also
alleges that Google has not reimbursed what it says are unlawful
charges, and has disputed advertiser complaints.
Google spokesman Steve Langdon told Reuters, "The claims are
without merit and we will defend against it vigorously”.
