Monday, 21 May 2018 10:10

Google forks out US$11m to settle AdSense class action

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A class action against Google for allegedly terminating AdSense accounts and not paying out the balance at the time of suspension has been settled.

The search giant was accused of using these methods to bolster its income.

According to a report in Bleeping Computer, Google agreed to apportion US$11 million to settle the class action filed by California firm Free Range Content.

In its suit, the company claimed that Google would close an AdSense account just before it was due to make a payment to the publisher in question, and the refuse to pay the balance that was due to the publisher.

Any website that signs up to host Google's ads is known as a publisher and is meant to receive some money for the ads it displays.

The case claimed: "...as the plaintiff and many other publishers have found, Google often shuts down AdSense accounts shortly before a periodic payment is due and then denies the publisher the entirety of the expected payment, notwithstanding all the ads the publisher already has served to visitors to its website during the payment period."

And further, it alleged: "...one self-described AdSense publisher stated the following: 'It’s common knowledge among SEOs that AdSense tends to be disabled a few days before the supposed payout. I haven't lost any big sum – only $2000 but I know one person that lost $40,000. It was all legitimate traffic coming straight from Google themselves, no click fraud no bought traffic etc. PS: I was using AdSense from 2008 to 2013 – over 5 years so it’s not like only new users got banned.”

Google was accused of "breach of contract, breach of the implied covenant of good faith and fair dealing, unjust
enrichment, and violation of the California Unfair Competition Law".

The case also cited the account of an anonymous person who claimed to be a former Google employee as saying that the disabling of AdSense accounts was a deliberate policy put in place by Google to better its earnings, a claim which the company denied.

The settlement came about because the plaintiffs realised that though they would have ultimately won the case, it would have taken too long and cost them far too much.

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Sam Varghese

Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

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