Yahoo will pay roughly $5 million to settle a lawsuit filed by Checkmate Strategic Group that alleged that the search engine provided insufficient protection against click fraud. The settlement will offset Checkmate's legal fees and Yahoo also promises to revisit its advertising terms.
Click fraud is a phenomenon in which individuals use scripts or manually click on pay-per-click advertisements for financial gain. Yahoo currently offers a 60 review period in which advertisers can challenge clicks.
The search engine will now offer advertisers a one-time extension to the claim period, allowing them to request a review of clicks dating back to January 2004. They will receive full credit for clicks that have been incorrectly invoiced.
The company also promised to appoint a traffic quality advocate, provide access to its Clickthrough Protection system and set up a Traffic Quality Resource Centre where advertisers are offered additional information.
Last March, Google paid $90m to settle a click fraud case from Lane's Gifts and Collectibles. As part of the settlement, Google dropped a 60 day deadline for filing click fraud reports.
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