Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Action over Google Adwords

By Amy Miller
February 01, 2012

Google has won another key victory in a lawsuit challenging its AdWords keyword advertising program.

In early January, Judge Edward Davila of the Northern District of California declined to certify a purported class action, which alleges that the search engine engaged in deceptive and unfair advertising regarding Google AdWords.

The program lets advertisers place ads online, but the suit, filed in 2008, claims advertisers were improperly charged for spots on low-quality parked domain and error-page websites.

But Davila, relying on the U.S. Supreme Court's decision in
Wal-mart Stores v. Dukes, 131 S.Ct. 2541 (2011) (www.supremecourt.gov/opinions/10pdf/10-277.pdf), said the plaintiffs could not meet the commonality requirement because each of their claims are different. Each plaintiff paid a different amount for their advertising.

“While plaintiffs present a hypothetical 'but for' price for advertising on parked domains and error pages absent Google's alleged 'deception,' they overlook the reality of how advertising costs are actually determined in the AdWords system,” Davila wrote in his 25-page decision. “Where, as here, proof of restitution due each class member cannot be proved with relative ease, the court finds good reason to deny class certification.”

The ruling is a significant win for Google, according to Eric Goldman, an associate professor at Santa Clara University School of Law and director of the High Tech Law Institute.

“The court reaches a sensible conclusion,” Goldman says. “We can't make any assumptions that one set of clicks are more valuable than another set of clicks, and that is the dominant question in this case.”

Google was represented by attorneys from Cooley, with a team led by litigation Chair Michael Rhodes, who declined to comment. Officials from Google did not immediately respond to requests for comment.

The plaintiffs were represented by attorneys from Schubert Jonckheer & Kolbe; Saveri & Saveri; and The Kralowec Law Group.

This is just the latest win for Google related to the AdWords program. Last October, a federal judge in the Eastern District of Texas refused to certify two classes of advertisers who filed separate infringement suits against Google over AdWords. The complaints, filed in 2009, claim that Google sold search terms that included registered trademarks to advertisers who were not affiliated with or sponsored by the trademark holder.


Amy Miller is a Reporter at The Recorder, the San Francisco-based ALM affiliate of Internet Law & Strategy.

Google has won another key victory in a lawsuit challenging its AdWords keyword advertising program.

In early January, Judge Edward Davila of the Northern District of California declined to certify a purported class action, which alleges that the search engine engaged in deceptive and unfair advertising regarding Google AdWords.

The program lets advertisers place ads online, but the suit, filed in 2008, claims advertisers were improperly charged for spots on low-quality parked domain and error-page websites.

But Davila, relying on the U.S. Supreme Court's decision in
Wal-mart Stores v. Dukes , 131 S.Ct. 2541 (2011) ( www.supremecourt.gov/opinions/10pdf/10-277.pdf ), said the plaintiffs could not meet the commonality requirement because each of their claims are different. Each plaintiff paid a different amount for their advertising.

“While plaintiffs present a hypothetical 'but for' price for advertising on parked domains and error pages absent Google's alleged 'deception,' they overlook the reality of how advertising costs are actually determined in the AdWords system,” Davila wrote in his 25-page decision. “Where, as here, proof of restitution due each class member cannot be proved with relative ease, the court finds good reason to deny class certification.”

The ruling is a significant win for Google, according to Eric Goldman, an associate professor at Santa Clara University School of Law and director of the High Tech Law Institute.

“The court reaches a sensible conclusion,” Goldman says. “We can't make any assumptions that one set of clicks are more valuable than another set of clicks, and that is the dominant question in this case.”

Google was represented by attorneys from Cooley, with a team led by litigation Chair Michael Rhodes, who declined to comment. Officials from Google did not immediately respond to requests for comment.

The plaintiffs were represented by attorneys from Schubert Jonckheer & Kolbe; Saveri & Saveri; and The Kralowec Law Group.

This is just the latest win for Google related to the AdWords program. Last October, a federal judge in the Eastern District of Texas refused to certify two classes of advertisers who filed separate infringement suits against Google over AdWords. The complaints, filed in 2009, claim that Google sold search terms that included registered trademarks to advertisers who were not affiliated with or sponsored by the trademark holder.


Amy Miller is a Reporter at The Recorder, the San Francisco-based ALM affiliate of Internet Law & Strategy.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
How Secure Is the AI System Your Law Firm Is Using? Image

In a profession where confidentiality is paramount, failing to address AI security concerns could have disastrous consequences. It is vital that law firms and those in related industries ask the right questions about AI security to protect their clients and their reputation.

COVID-19 and Lease Negotiations: Early Termination Provisions Image

During the COVID-19 pandemic, some tenants were able to negotiate termination agreements with their landlords. But even though a landlord may agree to terminate a lease to regain control of a defaulting tenant's space without costly and lengthy litigation, typically a defaulting tenant that otherwise has no contractual right to terminate its lease will be in a much weaker bargaining position with respect to the conditions for termination.

Pleading Importation: ITC Decisions Highlight Need for Adequate Evidentiary Support Image

The International Trade Commission is empowered to block the importation into the United States of products that infringe U.S. intellectual property rights, In the past, the ITC generally instituted investigations without questioning the importation allegations in the complaint, however in several recent cases, the ITC declined to institute an investigation as to certain proposed respondents due to inadequate pleading of importation.

The Power of Your Inner Circle: Turning Friends and Social Contacts Into Business Allies Image

Practical strategies to explore doing business with friends and social contacts in a way that respects relationships and maximizes opportunities.

Authentic Communications Today Increase Success for Value-Driven Clients Image

As the relationship between in-house and outside counsel continues to evolve, lawyers must continue to foster a client-first mindset, offer business-focused solutions, and embrace technology that helps deliver work faster and more efficiently.