Google Not Liable For Fraudulent Pay-Per-Click Ads


A San Jose District Judge has dismissed a lawsuit against Google (NSDQ: GOOG) that sought to hold the Internet search giant responsible for allegedly fraudulent ads created through its AdWords platform, reports But Judge Jeremy Fogel ruled that the federal Communications Act protects Google from any liability for the ads, noting in his written decision, “Providing third parties with neutral tools to create Web content is considered to be squarely within the protections of [the law]. Even if a service provider knows that third parties are using such tools to create illegal content, the service’s provider’s failure to intervene is immunized.”

The plaintiff, New Jersey resident Jenna Goddard, alleged that she was being billed for a ringtone subscription after she entered her mobile phone number at a fraudulent site she found by clicking on an AdWords ad. She argued that Google should be held responsible as the company

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