July 10, 2009 – Social media network Facebook has been served with their first Click Fraud lawsuit by Sports website RootZoo, citing that Facebook charged them with significantly more clicks than what actually occurred.
RootZoo claims that their own analytics programs showed much fewer clicks from their Facebook PPC ads then what they were charged by Facebook between November 2007 and June 2008. As an example, RootZoo cites that on June 2, 2008 their software detected 300 Facebook generated clicks, but Facebook charged the company with 804 clicks.
The timing of this lawsuit seems especially apt as other companies have begun “flooding message boards with complaints about overcharging” over the last several weeks according to Mediapost.
Facebook naturally claims the lawsuit as “unnecessary and baseless”, but RootZoo is seeking class-action status for their Facebook lawsuit, a move that might encourage other disgruntled Facebook advertisers to join in the fray.
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