Spyware expert Ben Edelman has filed a lawsuit against Yahoo, alleging that the massive online services corporation has covertly collaborated with spyware distributors to inflate advertising click counts and profit from partners.
This shocking lawsuit is set to be heard in a New Jersey court. Edelman also claims that Yahoo registered numerous domain names similar to popular URLs to “bombard” unsuspecting users’ computers with advertisements when they mistakenly type incorrect characters in the website address.
According to Edelman, Yahoo’s Overtune system (where companies pay a fee whenever someone clicks on their advertisement) can easily be exploited if someone intentionally clicks on ads solely to increase the costs Yahoo incurs from rival companies. “Not only does Yahoo fail to protect its customers, but it also aids in unfair competitive schemes while casually benefiting from them,” Edelman asserted.
Another startling revelation is that Yahoo allegedly displayed inappropriate advertisements whenever the corporation had to report financial results and feared not meeting investor expectations.
Yahoo has a close relationship with Direct Revenue, a company specializing in adware, which has recently been accused by the New York Attorney General’s office. This office stated that Direct Revenue earned $226,964 through Yahoo Overtune in April 2005 and similar amounts in May and June of the previous year.
A spokesperson for Yahoo declined to comment on the matter.
P.T.
