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Google is being sued by a man represented by a law firm that has successfully sued Google several times in the past. The firm is Kabateck Brown Kellner and the man is David Almeida, a local businessman from Massachusetts who claims that Google’s sign up process for AdWords wrongly conceals that advertiser text ads will run on AdSense content partner sites unless they affirmatively opt out.

Here’s a relevant factual passage from the complaint:

This action arises from the fact that Google does not inform its advertisers that if they leave the content bid CPC input blank, Google will use the advertiser’s CPC bid for clicks occurring on the content network. Google does this despite the fact that ads placed on the content network are demonstrably inferior to ads appearing on search result pages. Because there is no option to opt out of content ads during the AdWords registgration process, advertisers reasonably believe that by leaving the content ad CPC input blank they can opt out of having their ads placed on the content network. Google, however, has charged and continues to charge those advertisers who leave content ad CPC input blank for content ads on third party websites.

The suit states three claims: unjust enrichment, fraudulent concealment and unfair or deceptive business practices under the California Business and Professions Code. The lawsuit also announces itself as a class action. If this were only about an individual plaintiff, assuming he could win on liability, damages would simply be the value of clicks on the content network refunded. But a class action represents millions of potential dollars for the opportunistic law firm.

I would doubt that there can be any finding of fraud against Google but the other claims might be more viable. Opting out of AdSense is a fairly straightforward process after account setup. Still, the case can probably escape a motion to dismiss by Google and will likely go into the discovery phase.

Many auto insurance companies, feeling like personal injury lawyers were seeing them as easy targets, started to take a harder line and ligate cases rather than settle them out of the gate. This case might wind up settling but Google has incentives to fight these cases more vigorously and “send a message” to law firms who may see the search engine as a deep pocket and an easy target.

I have seen quite a lot of AdSense publishers posted in different forums stating that their AdSense accounts were banned by Google due to fraudulent clicks. Most of these people claim that they are innocent and have never clicked on their on AdSense ads. So they have no idea why click fraud can occur on their AdSense accounts. The truth is click fraud can happen in several ways and not necessarily caused by the AdSense publisher himself/herself who accidentally clicked on his/her own AdSense.

Below are some of the tips to protect your AdSense account:

1) Do not use autosurf programs to promote your websites that contain AdSense. Autosurf programs can substantially increase your website traffic or hits, AdSense page view and ecpm but people who surf your site only to earn advertising credit or other type of incentives. So the traffic generated from autosurf programs aren’t counted as real and thus against AdSense policies.

2) If possible, do not involve in any traffic exchange networks and programs. If you have join one or more programs or networks that can make you a steady AdSense commission, you should start worry about your AdSense account as this could mean that members of the program(s) were clicking each other AdSense ads all the while whether intentionally or unintentionally. As soon as Google detected a group of people were clicking each other AdSense, many of the members AdSense account in the program will be suspended. Also traffic exchange can be another mean to artificially generate tons of unreal website traffic or hits and boost up AdSense page view & ecpm and it is strictly prohibited by Google .

3) Do not join AdSense exchange networks. They are similar to traffic exchange programs except members are participate just for clicking each other AdSense. This should be a guaranteed way to be banned by Google.

4) Read all the Google AdSense policies at http://www.google.com/adsense to see whether you have against any policies and make the necessary modification.