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Showing posts from May 18, 2019

Class-action lawsuit accuses Google of improperly withholding refunds for ad fraud

In 2017, Google agreed to provide refunds to selected advertisers using DoubleClick Bid Manager (now called Display & Video 360) where ads were served on sites that had fraudulent or invalid traffic. Reportedly, hundreds of marketers were eligible, but a class-action lawsuit by AdTrader asserts that Google improperly withheld those refund payments, according to the Wall Street Journal (WSJ)Prior agreement to refund ‘platform fee.’ When the fraud was initially discovered, Google said it would repay its “platform fee,” which typically represents between 7% to 10% of the total value of the ad spend. Some marketers expressed dissatisfaction with the refund scheme. However, according to the WSJ, “Google said it wasn’t in a position to return money that had already flowed from its buying tool to third-party online ad marketplaces where publishers were selling ad space.”AdTrader initiated the class action suit against Google in California federal court, arguing that Google had “illegally…