Google faces lawsuit over 'click fraud'

ONLINE media giant Google is being sued amid claims that it has not done enough to protect its customers from 'click fraud', which the plaintiffs say has cost them millions of dollars.

Click fraud takes place when rival companies or malicious individuals set up programs to repeatedly click ads displayed by search engines, running up huge bills as the advertiser must pay the search provider for each click.

A website operator that gets a cut of advertising revenue from search providers can also be a big beneficiary. Click Defense, a seller of online marketing tools, said it was taking the action against Google and seeking class-action status.

Google charges advertisers a set amount per click, ranging from a few pence to well over £1. But Click Defense says Google's customers are offered no protection from the scam.

Google denies this and dismissed the action as frivolous. 'We believe the suit is without merit and we will defend ourselves against it vigorously,' a spokesman said.

Google and rival Yahoo have refused to estimate how many clicks are fraudulent and the practice is hard to quantify, but independent researchers suggest that as many as a fifth of ad clicks are maliciously made.