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Yahoo Sued Over Faulty Overture Affiliate Program


This here's the problem

Online collectibles retailer BigReds.com has filed suit against Yahoo for click fraud-related issues, reports ComputerWorld.

BigReds.com says between 2002 and 2006 it was charged more than $936,000 in pay-per-click charges. The company began using Overture as a PPC vendor in 2002. Overture was acquired by Yahoo in 2003.

According to BigRed, Overture developed an online affiliate program where site owners could appropriate ad traffic that should have gone to its webpage. Those site owners would earn commission on conversions, while Bigred was charged for clicks.

Bigreds claims almost $1 million in clicks were generated by affiliates looking to increase their commissions. It asserts Overture was aware of the fraud but took no action.

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