Google to pay $22.5 million in AdWords settlement

Google has struck a deal to settle a class-action lawsuit for $22.5 million in a dispute that arose from disappointments regarding the placement of advertisements.

The deal sets up a fund from which members of the class in the litigation would be able to receive cash payments as compensation.

“If you had a Google AdWords account and were charged for ad clicks, you may be entitled to money,” reads an introduction to the web site that’s been set up regarding the settlement.

website provides information about the settlement and enables people to make arrangements to receive cash from the settlement.

“This case alleges that Google failed to disclose to its AdWords customers that it placed ads on websites known as parked domains and error pages,” according to the website. “The lawsuit alleges that this conduct violated California laws against unfair competition and false advertising.” Parked domains are websites that aren’t fully developed or are completely undeveloped and have little or no content.

Mountain View-based Google denies the claims lodged against it.

The deal applies to U.S. residents with an AdWords account from July 11, 2004 through March 31, 2008. It also applies to people who were charged for clicks on advertisements that appeared on parked web domains or error pages.

The plaintiffs claimed the tech titan failed to provide its advertising customers with the value that they had paid for. The plaintiffs charged in their lawsuit that they bought advertising services and were led to believe Google would place their ads on internet sites that were high quality.

“Google concealed from advertisers that it actually was placing substantial numbers of their ads on low quality parked domain and error pages that contained little or no content, and which could not be accessed through what internet users considered to be search,” according to court records.


Above: Screenshot from website for the settlement of the Google AdWords litigation. 


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