Google has agreed to pay $100 million to settle a long-standing lawsuit accusing it of overcharging advertisers by failing to provide promised discounts and charging for ads outside specified geographic areas. The class-action case, which started in March 2011, involved advertisers who used Google’s AdWords program, now known as Google Ads.
The lawsuit claimed that Google manipulated its Smart Pricing system to reduce discounts and misled advertisers by failing to limit ad distribution to targeted locations. The settlement covers advertisers who used AdWords from January 1, 2004, to December 13, 2012.
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Google, while denying any wrongdoing, expressed satisfaction that the case, centered on ad features changed over a decade ago, has been resolved. The settlement awaits approval from a federal judge in San Jose, California.
Plaintiff lawyers may seek fees of up to 33% of the settlement, along with $4.2 million for expenses.
