|An Internet retailer that used a pay-per-click advertising service operated by Yahoo (NSDQ: YHOO) is suing the Internet giant for more than $1 million, claiming it was overcharged by thousands of dollars as a result of click fraud that Yahoo did little to prevent. |
Bigreds claims that many of the clicks were not from legitimate buyers but from affiliate Web site operators who received commissions from Overture and Yahoo based on the number of clicks their sites generated for advertisers.
"These clicks were not actual traffic, but were fraudulent clicks," Bigreds claims in court papers filed earlier this month in U.S. District Court in New York. "Affiliates of Overture used software programs, employed people, and/or directed people other than actual customers to click on plaintiffs links from keyword search results," the complaint states.