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Case ID: 4694 | Consumer Products | 06/08/2006
Lane's Gifts and Collectibles, a gift shop in Arkansas, filed a lawsuit against a number of Internet providers including Google, Yahoo!, Netscape, and America Online, for knowingly overcharging for their "pay per click" advertising services.
Hoping that other advertisers will join as plaintiffs in a class action suit, the gift shop alleged that the defendants have conspired to create an online environment that causes advertisers to suffer damages. The gift shop claimed that the advertising traffic was often generated fraudulently by people attempting to increase the advertiser's fees, not bona fide customers looking for information. The providers do not disclose that they are routinely and systematically overcharging for pay per click advertising revenue. Google came to an agreement with Lane's Gifts for $90 million in March 2006. Until the settlement is approved by the judge, the amount is not final. According to Google, terms of the agreement involves allowing advertisers to apply for reimbursement for clicks they believe are invalid. Advertisers can apply for reimbursement for clicks that happen during the 60 days prior to notifying Google. Under the agreement with the plaintiffs, Google make the window available for all advertisers, regardless of when the questionable clicks occurred. For all eligible invalid clicks, Google will offer credits which can be used to purchase new advertising with Google. Under the agreement, the total amount of credits, plus attorneys fees, will not exceed $90 million. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Consumer Products Cases of Interest New York based diamond company W. B. David & Co., Inc. filed suit in Manhattan federal court on September 2, 2004 against the De Beers group of Companies, Company Directors, DTC Sightholders, U.S advertising agency J. Walter Thompson, and others for some $100 million, injunctive relief and attachment of De Beers’ U.S. assets. A national class action has been filed in Florida against mobile phone giant, AT&T Wireless Services, Inc. The action is brought on behalf of all U.S. residents who have either been charged an early termination fee for canceling their AT&T Wireless service, or who have been forced to maintain their AT&T Wireless service in order to avoid early termination fees. The AT&T Wireless users allege that AT&T has breached its contract with customers by not providing adequate service and by not investigating problems with service sufficiently. The action is brought under state contract law and state laws regulating unfair and deceptive business practices and seeks compensatory and punitive damages as well as disgorgement of profits.
On May 5, 2005 the Court issued a permanent injunction against Creaghan A. Harry, who does business as Hitech Marketing, Scientific Life Nutrition, and Rejuvenation Health Corporation, by the Federal Trade Commission, on behalf of persons who have purchased bogus “human growth hormone” products over the Internet. The action alleged that Harry is responsible for millions of illegal spam email messages, all of which violate the FTC Act and the Controlling the Assault of Non-Solicited Pronography and Marketing Act of 2003 (CAN-SPAM Act). McDonald's faces multiple lawsuits that each claim the fast-food giant misled the public after it acknowledged that its french fries contain milk and wheat ingredients. One lawsuit, filed in Cook County Circuit Court in Illinois, alleges McDonald's falsely advertised that it was safe for people with dietary issues relating to the consumption of dairy items and wheat allergens to eat McDonald's french fries because they were gluten- and milk-free. A class action has been filed against Temple-Inland, Inc., a manufacturer of composite hardwood siding for residences and other structures, on behalf of all Missouri residents whose homes or buildings have been fitted with siding manufactured by Temple-Inland. The action claims that the siding is defective. A class action lawsuit filed in Madison County Circuit Court will now be arbitrated, as a result of an appellate court decision. The appeals court has voted to Verizon's motion to compel arbitration and stay judicial proceedings. The suit arises out of a dispute over cancellation fees between Verizon and named plaintiff Dawn Zobrist. When Zobrist became a Verizon customer in July 2001, she entered into a two-year service plan. Zobrist cancelled service in March 2002, and Verizon billed her $175 for a cancellation penalty which Zobrist claims she paid "under protest." The suit seeks financial and other damages. |
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