Google's Click-Fraud Defenses Under the Microscope

A 47-page long analysis was compiled regarding the measures implemented by Google to protect its advertisers from the click-fraud phenomenon in relation to a class action lawsuit faced by the Mountain View Company. The conclusion of an independent report filed Friday in an Arkansas court is that Google is enabling reasonable protective measures against online advertising fraud.

The lawsuit was filed in 2005 by Lane's Gifts and Collectibles and it alleged that Google's billing system for pay-per-click advertisements did not accurately reflect the reality as it was also taken into account fraudulent clicks. Alexander Tuzhilin, a professor of information systems at New York University was commissioned to analyze Google's anti-fraud measures as part of a settlement deal in the case at hand. "Based on my evaluation, I conclude that Google's efforts to combat click fraud are reasonable," stated Alexander Tuzhilin.

Google, whose main source of income comes from advertisements, has reported a 77% growth in profits compared to 2005, totaling revenues of $2.46 billion.

A two-day hearing is scheduled to begin on Monday and it will discuss upon the final approval of the class-action settlement. If approved, Google stands to pay a reported 90 million dollars for the damages it has allowed advertisers using its services to suffer.