Wednesday, June 17, 2009

"Pay-Per-Click Fraud"

In a "pay-per-click fraud" law suit filed with the US District Court in Seattle on Tuesday, Microsoft has sued three Canadians - Eric Lam, Melanie Suen, and Gordon Lam of Vancouver - and two companies named UMGE, Super Continental USA and Super Continental US.

The three residents of Vancouver, British Columbia, have been sued for breach of contract; torturous obstruction of business relationships; fraudulent enticement and falsification; computer fraud; conspiracy; and two violations of Washington anti-spyware and consumer laws.

According to Microsoft, the accused allegedly abused Microsoft's adCenter by conducting a campaign of competitor click fraud, which is a means for gaming keyword ad auctions that allow advertisers to receive ad placement based on a bid price.

The accused exploited the Microsoft adCenter network to help their own company, and its ad purchases of keywords connected to the so-called "gold farming" in the "World of Warcraft" online game; as well as another business of reselling car insurance.

Microsoft's associate general counsel, Tim Cranton, said: "Microsoft gathered substantial evidence that a handful of individuals were likely responsible for these click fraud attacks, which affected online advertisements related to auto insurance and the online role playing game, World of Warcraft."

Along with seeking an injunction against the defendants, Microsoft - which claims to have reimbursed advertisers for $1.5 million due to the fraud - has also sought $750,000 in damages.

No comments: