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Google Facing Third 'Parked Domain' Suit August 14, 2008

Posted by Mark Blei in : Uncategorized , trackback

by Wendy Davis, Thursday, Aug 14, 2008 7:00 AM ET
Google screengrab of parked domain programFor the third time this summer, Google has been hit with a fraud lawsuit stemming from its parked domain program, which serves pay-per-click ads on otherwise empty Web pages.

This latest case, a potential class-action lawsuit filed this week in federal district court in Chicago, was brought by Bartlett, Ill. container company JIT Packaging. The case joins a putative class-action lawsuit filed in San Jose, Calif. last month by Hal Levitte, an attorney who took out search ads, and one brought in San Jose by online retailer RK West, which operates the e-commerce site Malibu Wholesale.

As in the other two lawsuits, JIT Packaging alleges that Google displayed search ads on “low-quality” sites that yielded almost no conversions.

The Illinois company specifically takes issue with Google’s AdSense for Domains and AdSense for Errors programs, which place ads on sites that have little or no editorial content. Users often land on such sites after mistyping a URL. Examples cited in the complaint include jcpennycom.com and bedbathandbeyondcom.com.

“The quality of these sites as an advertising medium is substantially lower than sites on the rest of Google’s network,” the lawsuit alleges.

JIT also asserts that many of these sites violate trademark, copyright or cybersquatting laws because they include a brand name in the URL.

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