Google has agreed to pay $100 million to settle a class action lawsuit against Google Ads (formerly Google AdWords). The lawsuit, filed in 2011, accused the company of charging advertisers for clicks on ads displayed outside their specified regions.
Claims Against Google
The plaintiffs, a group of advertisers, alleged that Google misled them about ad placements, violating California competition laws. They also claimed that Google failed to apply promised discounts under its Smart Pricing program.
“This case involved features of advertising products that we changed more than a decade ago, and we are pleased to see it resolved,” Google spokesman Jose Castaneda stated.
Settlement and Ongoing Legal Battles
The settlement followed a detailed review of over 910,000 pages of documents and extensive Google Ads click data. It applies to advertisers who used Google Ads between June 1, 2009, and December 13, 2012. A judge must still approve the settlement before it becomes final.
Despite resolving this case, Google faces more significant legal challenges, notes NIX Solutions. It is currently battling a federal antitrust lawsuit that could force it to sell its Chrome browser. Additionally, the Justice Department has filed another lawsuit, alleging Google has monopolized the advertising technology industry. Yet, we’ll keep you updated as more developments unfold.