Google AdWords helps small businesses attract new customers by implementing targeted keywords in advertisements placed on websites. However, when used improperly, Google AdWords can do more harm than good. This is what a group of plaintiffs alleged in a class action lawsuit filed in 2008.
The plaintiffs filed the Google AdWords class action lawsuit asserting that Google “failed to disclose to AdWords customers that it would place their advertisements on parked domains and error pages.” Parked domains and error pages represent inferior websites that do not attract enough visitors to warrant advertisement investments. Thus, Google AdWords customers were charged premium advertisement prices for low quality ad placements. Class member plaintiffs charge Google with violating California laws that prohibits unfair competition and false advertising
“Google represents that it places ads on ‘high quality’ search and content sites, that is, websites where advertisements will be placed alongside contextually relevant search results or content,” stated the plaintiffs in the third amended complaint filed for the class action lawsuit. Both parties reached a class action settlement that Google failed to notify AdWords customers about where the search engine giant planned to place online advertisements
The Google AdWords class action lawsuit further alleges that Google knew about the improper placement of advertisements. However, Google has denied the allegations, but it has agreed to pay nearly $22.5 to settle the AdWords class action lawsuit. A judge issued preliminary approval of the class action settlement on March 9, 2017.
What You Need To Know
Customers that had Google AdWords accounts between July 11, 2004 and March 31, 2008 might be eligible to receive compensation out of the $22.5 million settlement fund. Google had to charge you for ads that appeared on error pages and/or parked pages. Class counsel has stated that eligible class members must have spent at least $1 on Google AdWords advertisement to be eligible for compensation. The potential award depends on the amount each class member spent on Google AdWords, as well as the number of class member claim forms filed.
Class members are required to submit their Google AdWords customer identifications at the time they submit a valid claim form. The deadline for filing a claim form is June 21, 2017. Class action settlement website www.AdWordsClassAction.com offers a downloadable PDF version of the claim form. The judge for the Google AdWords Litigation, Case No. 5:08-cv-03369-EJD, in the U.S. District Court for the Northern District of California case has set a final hearing date on July 27, 2017.
Several attorneys from the law firm Schubert Jonckheer & Kolbe LLP represent the class counsel in the Google AdWords class action settlement case. Cooley LLP has two attorneys currently providing defense counsel for Google.
