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Tuesday, October 13, 2009

Major Mea Culpa Manifested in Yahoo Class Action Settlement

Today Yahoo is sending out details of a settlement in a Class Action lawsuit about its negligent and sloppy provision of partner traffic to advertisers, dating back through the Overture days and all the way back to GoTo.com, before Yahoo even owned a PPC engine. The story is presented as a minor hiccup by a couple of news outlets as of this writing. Barry Schwartz at Search Engine Land points to the $20 refund component, though by my reading that's only reserved for any company that is now "out of business."

In the letter, Yahoo makes the usual noises about a settlement not being evidence of any admission of guilt.

But the description of what advertisers give up if they opt into the class reads like a detailed overview of every nefarious practice in pay-per-click advertising sales since the beginning of recorded time. (After the jump, the cut-and-paste.)

More important than the small refund is Yahoo's agreeing (1) to give advertisers a tool to fully control partner placement; (2) to better disclose online on the "Traffic Quality" portion of their website where traffic may come from; and (3) to enhance something called the "Click Investigation Request Tool" advertisers use to request information on specific traffic partners.

This non-admission-of-guilt will seem to many advertisers like a full recap of the often slippery relationship Yahoo has maintained with reality, especially in the realm of partner traffic. It comes as an albeit hollow victory for the many advertisers who were treated as an ATM by click arbitrageurs, rogue publishers, and Yahoo themselves.

And now for the ugly stuff:

"The Settlement will release Class members' Released Claims against Yahoo!. The complete definition of "Released Claims" is set out in the Settlement Agreement, which is available atwww.inreyahoosettlement.com or from the Claims Administrator. In summary, and without limiting the definition of "Released Claims" set forth in the Settlement Agreement, Released Claims include any and all claims, causes of action, demands, rights, liens, obligations, suits, appeals, sums of money, accounts, covenants, contracts, controversies, attorneys' fees and costs, expenses, losses, damages, judgments, orders, promises whatsoever, known or unknown, matured or unmatured, suspected or unsuspected, concealed or hidden, whether sounding in law, equity, bankruptcy, or in any other forum, from January 1, 2000 through and including September 22, 2009, that have been or could have been asserted in the Action. This release includes without limitation any and all claims concerning domain parking sites and pages; typosquatting sites and pages; bulk-registered domain name sites and pages; software applications; downloadable applications; pop-ups; pop-unders; "sliders"; "sidebars"; "injected ads"; adware; spyware; malware; malicious software; error implementations and pages; email campaigns; clicks that result from self-targeting; untargeted or random placements within the Distribution Network; ads displayed on sites or pages that lack any bona fide content, or any content at all; or ads shown to Internet users who have not conducted a search or viewed bona fide content related to a Yahoo! pay-per-click text advertisement."

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