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View Full Version : Are SEM's in line for getting sued?


Receptional
03-07-2005, 03:53 PM
At SES NY I attended the PPC fraud session. There was a general feeling that it was getting big, but my question hit a stunned silence from the panel and a number of people afterwards coming up saying "good point - we're in trouble here". Maybe with more time to think, we can find a way through a minefield here in the forums.

The session pretty well agreed that PPC fraud was becoming significant. However it was also noted that (say) Google's terms of service more or less indemnifies Google against fraudulent clicks, even though they have different standards for their adsense partners.

But your client isn't employing you (as an SEM) to let Google and Overture get away with that. By adding value and managing your client's clicks, you may find you have a "duty of care" that Google has negotiated away. What would happen if you failed to see a fraud, but the client did, and decided to sue YOU, rather than the PPC supplier?

It seems to me, SEMs are on a very sticky wicket on this one, as we say in the UK and even more so if your client has not physically seen the terms of service of the PPC engines and bought into them.

Do you agree that there is a problem?

How do you give back refunds that Google sends to you with no information about which search phrases were affected? Are you committing a crime if you do not refund the money to someone?

I think it is an issue and anyone else's input is appreciated...

Dixon.

bhartzer
03-07-2005, 04:05 PM
What would happen if you failed to see a fraud, but the client did, and decided to sue YOU, rather than the PPC supplier?
I don't really think it's going to be an issue--any good SEO firm (or SEO) should have a bullet-proof contract in place that covers such an issue should the client decide to sue.

Receptional
03-07-2005, 05:17 PM
a bullet-proof contract

I spent many thousands of pounds getting lawyers to do our contract... It limits us at the very worst to the amount the client paid.

But what if a judge were to agree that this included the principal spend with the engines?

Contract notwithstanding, PPC management should involve, for the client, some degree of professional integrity. i am sure Arhur Anderson (sorry if that was a wrong assumption) had a cast iron contract with Enron... but they were seen as "aiding and abetting" as we say in the UK.