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Bigreds, an internet retailer has decided to sue Yahoo for $1 million over click fraud starting back in 2002. Yahoo offered Bigreds $17,000 back, but Bigreds wants more and they are suing for over $1 million in damages and penalties.
I wanted to pull out some of the best comments on this lawsuit, which you can read more about at InformationWeek, from a WebmasterWorld thread:
Look if you are going to build your billion dollar business around PAYPERCLICK then you should probably have systems, people, backups for the most obvious exploit.It's the modern day equivalent of a bank without a safe.
Um, i'm looking at this site, and I really don't see how any traffic would convert, regardless of whether it's fradulent or not. Sorry Red, but I'm thinking that maybe the lawyers are the only ones that are going to come out ahead here.
I don't really see the problem with advertisers bringing suits against garbitrage because the advertiser foots the bill for the middle man market they create.
Decide for yourself...
Forum discussion at WebmasterWorld.
