Free Complaint - District Court of California - California

Case 3:08-cv-03888-SI

Document 1

Filed 08/14/2008

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GUrDO SAVERT (022349) [email protected] R. ALEXANDER SAVERT( I 73 r02) rick(òsaveri.com CAD-IO ZTRPOLT ( I 79 I 0S) [email protected]

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SAVERI & SAVERI.INC. I I I Pine Street, Suite 1ZOO San Francisco, CA 94111-5619 Telephone: (415) 217 -6810 Facsimile: (41 5) 217 -6813 TERRY GROSS (103878) [email protected] ADAM C. BELSKY (147800)
[email protected] MONTQUE ALONSO (r27 07 8) monique@gba-løw.com GROSS BELSKY ALONSO LLP 180 Montgomery Street, Suite 2200 San Francisco, CA 94104 Telephone: (415) 544-0200 Facsimile: (415) 544-0201

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Attorneys for Pulaski & Middleman,LLC

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UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA
SAN FRANCISCO DIVISION

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Pulaski & Middleman,LLC., individually and on behalf of all others similarly situated,

Case No.:

CLASS ACTION

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Plaintiff.
V.

COMPLAINT
JURY TRIAL DEMANDED

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GOOGLE INC., a Delaware corporation,
Defendant

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COMPLAINT

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Plaintiff, Pulaski & Middleman, LLC, ("Pulaski") alleges, individually and on behalf
the Class described below, and upon information and belief, except as to allegations specificall pertaining to itself, which are based on personal knowledge, as follows:

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SUMMARY OF CLAIMS

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This case is about Defendant Google's fraudulent, unfair and deceptive

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business practices in corurection with its AdWords advertising program

("AdWords"). Pulaski

brings this case both individually, and on behalf of a similarly situated Class, against Defendant Google, Inc. ("Google") for breach of contract, breach of duty of good faith and fair dealing,

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violations of Business Professions Code Sections 17200 and 17500 and uniust enrich-ment.

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PARTIES

2.

Plaintiff, PulaSki & Middleman, LLC, is Texas limited liability company

engaged in the practice of

law. Pulaski's offices

are located at 6800 West Loop South, Suite

200, Bellaire, Texas 7740L During the relevant time set forth herein, Plaintiff contracted with Google to place advertisements through AdWords. Pulaski has contracted with Google and participated in the AdWords program since on or about li4:ay 6,2006.

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3.

Defendant Google Inc. ("Google") is a publicly held corporation that was

incorporated in California in September 1998 and reincorporated in Delaware in August 2003.

Google's headquarters are located at 1600 Amphitheatre Parkway, Mountain View, California 94043. Defendant Google's website is located at www.Google.com. In2007, Google's total
revenue was approximately 16.6 billion , 99yo of which was derived from Internet based

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advertising services offered through AdWords.

JURISDICTION AND VENUE

4.

This Court has subject matter jurisdiction over this action pursuant to 28 U.S.C.

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$1332(d) in that this is a civil action filed under Federal Rule of Civil Procedure 23 and Plaintiff
and other members of the Class are citizens of a state different from Google, the aggregate

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amount in controversy exceeds $5,000,000.00, exclusive of interest and costs, and there are more

than 100 Class members 28 U.S.C. 91332(dX2), (6).

COMPLAINT

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5.

Venue is proper in the Northern District of California Pursuant to 28 U.S.C. $

1391(a) in that: (1) Google resides in this judicial district; (2) a substantial part of the events or omissions giving rise to the claims asserted herein occurred in this judicial district; and (3) Google is subject to jurisdiction in the Northern Disrrict of califomia.

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6.

No other forum would be more convenient for the parties and witnesses to

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litigate this action. Defendant Google is a resident of this judicial district and a substantial
amount of the evidence and witnesses are located in this iudicial district.

FACTS

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A.

General Background

7.

Google is the world's single largest online marketing/advertising business

in the world. According to Google: "There's no larger network for contextual advertising in the

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world." https://adwords.google.com/select/afc.html.

8.

The "AdWords Advertising Program" ("AdWords") is Google's primary
98%o

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advertising program and the source of over

of its annual revenue. In2004,2005,2006,

and,

2007 Defendant Google generated approximately 99Yo of its annual revenue from its AdWords
advertisers.

9.

Google's advertising network ("Google Network") reaches over

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Intemet users worldwide. http://adwords.google.com/support/bin/answer.py?answer:61

attracting Ad'Words advertisers to contract for participation in AdV/ords, Defendant Google
represents its "reach" as follows:

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Germany
Japan France

89% 86%
79%
75Yo

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United Kingdom United States

76%

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Source: comScore Networks machine-based panel

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10.

Pulaski and the Class are "Adwords advertisers" that have contracted with

Google to participate in the AdWords advertising program and display their advertisements on the Google Network.

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B.

Google Network
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The Google Network, also referred to as the Google AdSense Network, is the

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association of individuals/entities that collectively provide the intemet locations where AdWords

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advertisements are displayed and monetized. The Google Network consists of: (1) Google; (2) Google Search Network participants (America Online, CompuServe, Netscape, AT&T V/orldnet

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Earthlink, Sympatico, and others); (3) Google Content Network participants (New York Post
Online Edition, Mac Publishing (includes Macworld.com, JavaWorld, LinuxWorld), HowStuffWorks, and others); (4) Google Domain Network participants (Sedo.com, Oversee.net
and others); and (5) Google AdSense Network participants.

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12.

The Google AdSense program pays participants for AdWords ads monetized

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their sites. Google AdSense consists of the following different programs: AdSense for Content,
AdSense for Search, AdSense for Mobile, AdSense for Video, AdSense for Domains, and AdSense for Errors.

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13.

AdSense For Contenl.' AdSense Network partners that contract with Google to

allow AdWords Advertisements to be placedidisplayed on content based webpages under their
ownership, license, registration, and or other control. As explained by Google on its website:

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"The Google content network comprises hundreds of thousands of high-quality websites, news
pages, and blogs that partner with Google to display targeted AdWords ads. When you choose to

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advertise on the content network, you can expand your marketing reach to targeted audiences-and potential customers--visiting these sites every day. There's no larger network for contextual

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advertising in the

world." It includes, but is not limited to the following individuals/entities:

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Âffi. Qn*unn,i*,,

hov,s,ftdfidr$,eorn

ffi ffi
N@

ëlrilqrü9lh$llrfr rnfc$paed
htçs :i/adwords. goo gle.conv selecuarc. nrml

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14.

AdSensefor Search: Adsense Network partners that contract with Google to

place a Google search box on their websites to allow a website's users to perform search queries

using keywords from a website they have visited. Based on the search query typed into the
search box, Google

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will display Google

search results along with related Adwords

advertisements and Google shares the revenue with the site owner.

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15.

As Google states: "AdSense for search allows website publishers to provide

Google web and site search to their visitors, and to earn money by displaying Google ads on the
search results pages."

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peesk seãrcll t*iÊ

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¡i,*¡Wk+*træ*&+rÈ*.e#M{d@.}¡ r,*"Á*[#

Slffio*o*,,*o**o

lEäË

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1_.:í1i::""y...:21:.1:".I1¡*fg,-."., _......

I ffiå.-1ffir"æ?.*krktuêku* i risffq¿p.|,*-.bci¡Fc@tuþ_

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.

væb fiønr prrr site, fte seweh æsntll* pagei åtëi¡r uÞ q¡Ë& ãdr .ll¡¡d yon Ëet paìd w*ies

peopleclåckafithesüeds,

https://www.google.com/adsense/login/en_US/?hl:en_US&sourceid:aso&subid:ww-en ads-r3_b_top&medium:link& gsessionid:jj UuHkGH_dk

US-et

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entities:

Defendant Google explains on its website, the: "(g)lobal search network which

includes, but is not limited to, Google Product Search and Google Groups and the following

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t'|ets{apefilllftenter

ffEorrhunk.

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SCompu$e*n $'strqpingcont

ffinu Wr* K.wortdnet rñß:
http ://adwords. goo gle.com/support/bin/answer.py?answe

l=6l

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17.

This is how Google defines a "search": The Essentials of Google Search Doing a search on Google [or a site in the search Network] is easy. simply
type one or more search terms (the words or phrase that best describe the

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information you want to find) into the search box and hit the'Enter' key or cli
on the Google Search button.

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Hawaii

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In response, Google produces a results page: a list of web þages related to your
search terms,

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with the most relevant page appearing first, then the next, and so

on. http://www.google.com/support/bin/static.py?page:searchguides.html&ctx:basis

18.

AdSensefor Mobile: AdSense Network partners that contract with Google to

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allow AdWords Advertisements to be placed/displayed on mobile webpages under their
ownership, license, registration, and or other control.

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AdSensefor Video: AdSense Network partners that contract with Google to

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allow AdWords Advertisements to be placed/displayed within video streams under their
ownership, license, registration, and or other control.

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20.

AdSensefor Domains.' Adsense Network partners that contract with Google

allow AdWords Advertisements to be placed/displayed on parked domains enterd into the
address bar under their ownership, license, registration, and or other control, based on the

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meaning of the "domain names". Google explains on its website: AdSense for domains allows domain name registrars and large domain name holders to unlock the value in their parked page

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inventory. AdSense for domains delivers targeted, conceptually related advertisements to parked
domain pages by using Google's semantic technology to analyze and understand the meaning the domain names. Our program uses ads from the Google AdWords network, which is comprised of thousands of advertisers worldwide and is growing larger everyday. Google
AdSense for domains targets web sites in over 25Ianguages, and has

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of

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fully localized

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segmentation technology in over l0 languages. http://www.google.com/domainpark/index.html

2T.

AdSensefor Eruors: Adsense for Errors program serves AdWords

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Advertisements when an internet user enters an unregistered URL or search query in their browser's address bar.

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C.

Google AdWords Program

22.

The Google AdWords program, launched in 2000, is Google's primary

advertising program. It offers participants an opportunity to place advertisements through Google's expansive network that reaches up to 86% of worldwide Internet users.

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23.

AdWords advertisements appear throughout the Google Network alongside or

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above search results, on web pages, in e-mail, blogs, in video, and./or otherwise on Google or

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Google Network (collectively referred to herein as "Advertising properties").

24. 25.

AdWords advertisements are offered in a variety of formats including, but not

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limited to, text ads, image ads (barurer ads), flash ads, and video ads.
Google states that advertisements are displayed throughout the Google Netwo

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based on factors such as: how much an advertiser bids, the quality of the advertiser's ad, and

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how many other people want to bid on a particular keyword.

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Network.

AdWords ads can be displayed on the: (1) Search Network and/or (2) Content

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themes.

Search Network Ads are targeted and displayed based on a user's exact search

query terms and keywords. Content Network Ads are targeted and displayed based on content

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28.

Google defines its "Content Network" as follows:

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visiting these sites every day. There's no larger network for contextual
advertising in the world.

The Google content network comprises hundreds of thousands of high-quality websites, news pages, and blogs that partner with Google to display taigeted Adwords ads. when you choose to advertise on the content network, you can expand your marketing reach to targeted audiences--and potential customers--

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As an AdWords advertiser, you can hand-pick sites from the content network or simply let Google's proven ad targeting display your ads on the website pages most relevant to your þroducts and services. https ://adwords. google.com/seleclafc. html

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29.

Google, at

https://adwords.google.com/support/bin/answer.py?answer:61

19&topic:82, provides the

following representations about, and example of, ad placement on the content network: Ads on the content network
AdWords ads on content sites are targeted to the content and URL of each page. In the screenshot below you can see how the ads are displayed on a content page
and that the ads are directly relevant to the content of the page.

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30.

Google partners participating in the AdSense program are required to adhere to

the following policies. "No Google ad may be placed on any non-content-based pages." In

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addition, no Google ad is allowed to be placed on web pages generated "specifically for the
purpose of showing ads, whether or not the page content is relevant."

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ww-ww-et-asui&medium:link

31.

Google states the following about the "search Network',:

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The search network

Your ads may appear alongside or above search results, as part of a results
page as a user navigates through a site's directory, or on other relevant search

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pages. Our global search network includes Google Product Search and Google

Groups and the following entities:

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Att þÞ
ffiffi
32.
WjVfsrf dftrr

Nersca,pe

$$ Netcenter-

ffifr

r.*h.rtntrt.

&fü.mwr*$ein

ffsuoppirrg.com

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https ://adwords. google. com/supporlbin/answer. py?answe

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Regarding the Search Network, Google tells advertisers: "Ads are targeted

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based on a user's search terms. For example,

if you search for'Italian coffee' on Google, you'll

see related coffee ads next to the search results."

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http

:

//

adwords. goo gle. com/supporlbin/answer.py?hl:en&answer:6

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33. 34.

All new keyword campaigns are automatically included into both the Search

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and Content networks.

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An AdV/ords advertiser can exclude an ad campaign from the Search and/or

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Content Networks, however until May 2008, there was no way to categorically exclude "parked sites" or AdSense for Errors pages from a campaign.

35.

In fact, until May 2008, Google actively concealed the identity of parked pages

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and error pages that displayed AdWords advertisements.

D. Inclusion of Low -Quality Parked Domains and Error
Networks

Pages in the Google

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36.

Google includes millions of low-quality parked/undeveloped websites ("sham

sites") in the Google Search and Content Networks, despite the fact that said sites do not contain
any content and are not search sites.

37. 38.

Until May 2008, Google actively concealed the monetization, with AdWords

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advertisements, of low-quality, parked and error pages. Google includes web pages displayed through the AdWords for Errors program

in the "Content Network," despite the fact that the pages contain no content. Google displays

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AdWords ads on its AdSense for Errors web pages when an Internet user enters an unregistered

URL in their browser's address bar.

39.

AdWords advertisers in the Google "Content Network" may have their ads

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displayed not only on "content sites," but also on parked/non-content sites, Adsense for Domains, and AdSense for Error pages.

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40-

AdWords advertisers in the Google "search Network" may have their ads

displayed not only on "search sites," but also on parked/non-content sites and AdSense for Domains pages, where someone only typed in a domain name into the address bar and/or no
search query from a search box occurred.

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41.

Google intentionally includes the low-quality parked/undeveloped sites,

AdSense for domains and error pages in the Google Search and Content Networks in order to

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inflate its reported search statistics, as well as to maximize revenue from internet traffic by providing substantially more advertising venues (Internet locations) and more billed "clicks" or "impressions" for AdWords advertisements.

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42.

Google actively misleads AdWords advertisers and otherwise conceals the fact

that many of its AdWords advertisements appear on low-quality parked/non-content sites and Error pages, by among other things:

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a. b. c.
reports;

Repeatedly affirmatively representing

on its

website,

and

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communications, that AdWords advertisements appear on "High-quality" sites;

Failing to reference the AdSense for Domains and AdSense for Errors pages in i

def,rnition of the Google Network or on the main Adsense pages;

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Until May 2008, failing to provide any specific identification of low-quality

parked/non-content, AdSense for Domains and Error pages in its Content Network

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d.

Even through the present, failing to identify the specifi c parked/undeveloped

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other AdSense for Domains sites monetized through its "Search Network" on its AdW
advertisers' performance reports;

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e.

After it commenced reporting in May 2008, Google recharacterized many of th{
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parked/undeveloped sites and AdSense for Domains pages as "search Network" sites to avoidl

specifically reporting monetization
AdWords

of

those sites and further conceal their conduct frornl
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advertisers;
Misrepresenting to AdWords advertisers the real reason that parked/undeveloped

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sites and AdSense for Domains have equal or better click through rates than traditional and search sites. Google fails to disclose such pages and only shows ads on

content

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the

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parked/undeveloped sites. In doing this, Google violates its own terms and conditions of

how ads can be displayed on the Search and Content Networks, further misleading advertisers;

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g.

Knowingly provided AdWords advertisers false defintions of the AdSense

for

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Domains Network, and mispresented to advertisers what the AdSense for Domains

Nework

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consists of and how an intemet user gets to a parked page in the AdSense for Domains Network.

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Otherwise making affirmative misrepresentations, fraudulent statements,

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omissions of material fact to AdWords advertisers and the general public regarding the AdWordsl
and AdSense programs.
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43.

Google induces advertiser participation in AdWords by emphasizing the "high-

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quality" of sites on which AdWords ads will be placed, and intentionally concealed and omitted
Google's practice of placing ads on low-quality parked AdSense for Domains sites or AdSense for Errors sites, as well as on sites that it knows violates cybersquatting,

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trademark,

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copyright, and other intellectual property

laws. statement:

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44.

Google's AdWords website, which potential customers view before clicking thel

"Start Nod'button to sign up for the program, includes the following

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Expand your reach through the content network with hundreds of thousands of high-quality websites, news pages, and blogs that partner with Google to display AdWords ads, the Google content network can reach users all over the web to help you drive conversions. Choose from text, image, and video formats to communicate your message.

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45. 46.

Google intends to and has affrrmatively mislead AdWords advertisers,

and

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otherwise omitted material facts, regarding the composition of the Content and Search networks.
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Google makes numerous affirmative representations and promises, to AdWordsl

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advertisers about participation in the AdWords program, including but not limited to

the on

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following:
a.
By advertising on sites in the Google "Content Network": "Your ads appear
sites that are highly relevant to your products and services. As a result, you're already

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aligned

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sites." https://adwords.google.com/seleclafc/cycle.html b. All web sites and products are reviewed and monitored according to Google's
with the interests of people visiting those
rigorous standards, so as the network grows, your AdWords ads will continue to appear only

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on

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high quality sites and products.
https://adwords.google.com/support/bin/answer.py?answe

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ic:&type:f&%o20onclick: Similarly, Google states: "To ensure overall quality, all sites are
carefully reviewed before being allowed in the Google

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Network."

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http://adwords.google.com/support/bin/answer.py?hl:en&answer:6104

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c.

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Google represents that a number of "tools" offer automated optimization of ad

Adwords ad campaign and

will

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save the AdWords advertiser money, including but not limitedl

to: AdWords Budget Optimizer, Site exclusion tool, performance reporting
contextual targeting tools, and AdWords

tools

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Discounter.
AdWords

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Google, despite its representations to AdWords advertisers, uses its automated
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tools to maximize its own revenue and for its own financial gain. Google misleads
advertisers to utilize the tools with false promises that the tools

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will benefit the Adwordr

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Advertiser. 48. For example, Google offers the "AdWords Budget Optimizer" tool that
fact, Google uses that tool to maximize its own revenue by displaying AdWords ads on many lowquality sites that generate costly low-quality clicks, such as AdSense for Domains pages.
promises to get AdWords advertisers the most clicks for their advertising dollars. In

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E.

Monetization of AdWords Advertisements

49.

Google generates money when it "monetizes" AdWords advertisements bv

displaying them throughout the Google Network and then charging AdWords advertisers
one of its two primary pricing regimes: Cost Per Click ("CPC") and Cost per Thousand

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Impressions ("CPM").

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50.

Google generates revenue under the CPC regime when:

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a. Google displays the AdWords advertisement on the Google Network; b. An Internet user "clicks" on the advertisement; and c. Google charges the corresponding AdWords advertiser a "click fee."

51.
impression.

Google generates revenue under the CPM regime by charging advertisers a flat

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rate based on display of impressions, regardless of whether an Intemet user

"clicks" on anv

52. 53. 54. 55.

Under the CPC pricing regime, Google places ads through the Google Network

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and the Adwords advertiser is charged "per click," each time an ad is clicked.

Under the CPM pricing regime, an Advertiser pays Google a set fee per 1000

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impressions displayed. CPC or CPM pricing is available on placement targeted ads. Only CPC pricing

is offered for contextually targeted ads. CPC advertisements are displayed when an Internet user enters search terms

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into the Google Search engine. The order in which the AdWords advertisements appear depends
on the amount of the bid and the "quality score" of all ads shown for a given search.

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56.
bidding").

AdWords advertisers can choose to pay a different price when ads appears on

the content network versus when it appears on Google or a Google search network site ("content

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57.

Google represents to AdWords advertisers that the "AdWords smart pricing

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feature" will optimize their advertising dollars, because

it: "(w)ill

adjust the cost of your content

network click based on the content network site's relevance to your own site. For example,

if

data shows that a particular click from a content network page is less likely to turn into a sale,

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registration, or other desired behavior, we'll automatically reduce the price you pay for that

click."

https ://adwords. google.com/select/afclpricing.html

58.
cliclq
a

AdV/ords advertisers can set a maximum price that they are willing to pay per

4
5

maximum daily budget, and/or use the "AdWords Budget Optimizer" that Google

promises will "(t)ry and find you the most clicks possible within your budget."

6 7

59.

Google represents that it is always actively working for AdWords advertisers to

get them the lowest advertising rates, with tools such as the "AdWords Discounter" which Google affirmatively represents "(a)utomatically reduces the actual cost-per-click (or CPC) you pay to the lowest cost needed to maintain your ad's position. The AdWords Discounter keeps

I
9
10

working no matter which method of display or bidding you choose."
https://adwords.google.com/supporlbin/answer.py?answe=6084&topic:l

ll
12

l5

60. F.

Aggregate paid clicks on Google Network sites increased by 65%o from year-

l3

end 2005 through year end 2006 (See 2006 Google 10K at43).

l4
15

AdWords Contracts, Guidelines, and Policies

61.

[n order to participate in AdV/ords, advertisers must electronically accept the

l6
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T9

following contracts: https://adwords.google.com/select/tsandcsfinder. ("AdWords Contract") and http://www.google.com/accounts/TOS ("Google Universal Contract"), as well as all
general and Google policies, procedures and regulations such as: Editorial Guidelines (adwords. google.com/seleclguidelines.html), Google Privacy policy

20

(www.google.com/privacy.html) and Trademark Guidelines (www.google.com/permissions/guidelines.html), and Google and Partner ad specification
requirements (collectively, "Policies"). Pulaski and each member of the Class has entered into
said contracts with Google. See Adll/ords Contracts, attached hereto as

2l
22
23

Exhibit "A."

24
25 26

62. 63.

Google is contractually obligated to act in good faith and deal fairly with

AdWords advertisers.
Google is further obligated to act in good faith and deal fairly with AdWords

27
28

advertisers in implementing and enforcing its self proscribed policies and guidelines.

COMPLAINT

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64-

Google is obligated to discharge its contractual obligations without violating

California, United States, and Intemational cybersquatting, typosquatting, cyberpiracy,
trademark, copyright, and other intellectual property laws.

4
5

65.

Google controls the Internet advertising market through restrictive agreements

with many of its Google Network participants that forbid those participants from displaying any
advertisements on their sites other than Google advertisements. Therefore, in order to gain
access to

6 7

millions of Internet advertising properties, Pulaski and the Class were left with no

I
9
10
11

choice but to contract with Google for participation in the Google AdWords advertising

66.

Google requires, as a condition for participation in the AdWords advertising
86%o

program, and to gain access to the Google Network properties that purportedly reaches

+

of

world-wide internet users, that AdWords advertisers consent to and enter into electronic
contracts with Google that are displayed on Google's website.
67

t2
13

-

AdWords advertisers are required to agree to comply with Google's rules,

I4
15

regulations, guidelines, and other policies. In fact, several of the policies are explicitly incorporated into the contracts.

t6 t7
18

68.

Pulaski and the Class have all entered into the same standard contracts with

Defendant Google, as a condition of participation in Google's AdWords advertising program. Pulaski and the Class are subject to the same, standard written policies, procedures, and guidelines published by Google on its website.

t9
20

69.

Google unilaterally drafts all contracts, policies, procedures, and guidelines

2l
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23

governing the relationship between Google and AdWords advertisers, as well as any and all
amendments and modif,rcations.

24
25

70. 71.

Google places all AdWords advertisements on the Google Network.
Pursuant to fl2 of the Google Inc. Advertising program Terms:

26 27 28

"Google customer understands and agrees that ads may be placed on (y) content or property provided by Google ("Google Property"), and, u customer opts out of such placement in the manner specified by Google, (z) other content or property provided by a third party ("Partner") upon whi Google places ads ("Partner Property"). Customer authorizes and consents all such placements."

COMPLATNT

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1

72.
Advertisements.

Google is obligated pursuant to the terms of 12., to act in good faith and deal

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fairly with Google AdWords advertisers in discharging the placement of Ad'Words

4
5

73. 74.

Specifically, Google has an obligation to display advertisements on legitimate

sites that Google and/or its "partners" are legally entitled to utilize and monetize.

6 7
8

Google breaches its contractual obligations to Pulaski and the Class when

it

displays and/or charges them for their AdWords advertisements displayed on sites that Google is

not legally entitled to use, sites that violate trademark law, sites that violate cybersquatting law,
sites that violate cyberpiracy laws, sites that violate copyright laws, and sites that violate other

9

l0
11

California, United States and/or International laws.

75.

Google breaches its contractual obligations to Pulaski and the Class when it

t2
13

displays and/or charges them for their AdWords advertisements displayed on sites that violate

Google's own written and published guidelines, policies, and rules.

L4 15

76. 77. 78.

Google breaches its contractual obligations to Pulaski and the Class when it

overcharges them for AdWords advertisements.

t6
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Google breaches its contractual obligations to Pulaski and the Class when it

includes millions of low-quality sites and Error pages in its "Content" and "Search" Networks. Google breaches its contractual obligations to Pulaski and the Class when it

l8
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20

utilizes its tools and technologies for their own pecuniary gain and to the detriment of Pulaski
and the Class, while inducing Pulaski and the Class to utilize those tools with false representations that the tools

2l
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11 ¿J

will optimize/maximize the value of their participation in

AdWords.

79.

Google knowingly and intentionally displays, and charges Pulaski and the

24
25

Class, for AdWords advertisements on:

26 27
28

a. b.

Low-quality parked/non-content sites and Error pages;
Sites that

it "knows" violates cybersquatting, typosquatting,

cyberpiracy

trademark, copyright and other intellectual property laws;

COMPLAINT

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c. d. e.

Sites that

it knows violates Google's own written and published polic

guidelines, and rules, such as gambling sites and pornography related sites;
Sites that

it knows it is not legally entitled to use; and

4
5

Sites that neither itself nor its partners are legally entitled

to use

monetize, and

in fact whose use is in violation of united States

and Intemationa

6
n

cybersquatting, trademark, copyright and other laws ("illegal sites"). G. Google Representations, Promises, and Communications

I

I
9 10
11

80.

Google makes specific affirmative written representations and promises to

Plaintiff, the putative Class, and the general public which are located on its website,
www.google.com, as well as, specifically contained in the following documents:

t2
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15

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18

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20

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24
25

81.

Google knowingly and intentionally uses the written representations to induce

26 27
28

AdWords advertisers to contract with Google for participation in the AdV/ords advertising
program. Google intends Plaintiff, the Class, and the public to rely upon and act in reliance upon its representations on www.google.com and other publicly available documents and

COMPLAINT

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communications. Plaintiff and the Class reasonably expect Google to act in accordance with
these representations.

82. 83.

Google knows that its website, and other public communications are false,

4
5 6 n I
8

misleading, and/or omit material facts and information. Google intentionally and knowingly continuously violates its written policies,

guidelines, policies and rules in operating the AdWords and AdSense programs. It does so for it own ill-gotten commercial gain, in ways such as but not limited to:

a.

Intentionally displays and charges Plaintiff and the Class for "clicks" on

9

advertisements placed on websites that violate Google's written contracts, guidelines, policies, and public representations, such as sites generated solely for the purpose of displaying AdWords

l0
1l

Advertisements and sites violating trademark and copyright law.

I2 l3

b.

Intentionally displaying and charging Plaintiff and the Class for "clicks"

advertisements placed on low-quality and undisclosed websites participating in the AdSense Domains and Adsense for Errors programs;

t4
15

c.
program;

Overcharging Plaintiff and the Class

for advertising through the

AdWord

t6
T7

d.
"click"

Intentionally hijacking and diverting Plaintiff and the Class Member's legiti

18

internet traff,rc to sham infringement websites, and then requiring Plaintiff and the Class to
ransoms to get their own intemet traff,rc

t9
20

back. For example, a user intending to visit t
¡y''

retailer Target's legitimate website might mistype it as "www.wwwtarget.com." At the "\M\Ã

2l
22
23

infringing site, the intemet user sees a list of ads provided by Google, including an ad for
legitimate Target site.

If

the user clicks the legitimate Target ad, the user is taken to the

Target website, but Target has to pay a "ransom" in the form of a "PPC" click fee in order to

24
25

their intended internet traffrc back from Google;

26 27 28

e. f.

Displaying, and charging for, AdWords advertisements in spyware programs;

Failing to utilize targeting technology to ensure that AdWords ads are "high

targeted," but rather placing and displaying AdWords ads in a random fashion.

COMPLAINT

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84.

Without their knowledge or consent, advertisers who joined Google's AdWo

program have had their ads placed on pages contained in AdSense for Domains, or parked sites,
and AdSense for Errors, or error pages. The quality of these sites as an advertising medium is

4
5

substantially lower than sites on the rest of Google's network, and many of the sites directly

violate United States and International trademark, copyright, and other intellectual property laws.

6
7
8

85.

For example, Google routinely and intentionally charges Plaintiff and Class

members for clicks on advertisements improperly displayed on parked domains that infringe

distinctive and valuable marks, for example "\Mww" , "http" and "com.com" domains, such as:
bedbathandbeyondcom.com; chevycom.com; chryslercom.com; cocacolacom.com; discovercreditcardcom.com; disneylandcom.com; disneyworldcom.com; ebaumsworldcom.com; espncom.com; fordmotorscom.com; geicocom.com; homedepotcom.com; ibmcom.com; ikeacom.com;jetbluecom.com; jcpennycom.com; kohlscom.com; kmartcom.com; mcdonaldscom.com; musiciansfriendcom.com;
nâscitrconì:,com; oldnavycom.com; pizzahutcom.com; randcom.com; saabcom.com;

9
10

1t

l2
13

t4
15

scottradecom.com; travelocitycom.com; usairwayscom.com; volkswagencom.com;

t6

xangacom.com. httpaarp.com, httpabc.com; httpabcgames.com; httpabckids.com;
httpabcnews.com; httpamericanexpress.com; httpamsouthbank.com; httpautotrader.com; httpbankofamerica.com; httpbellsouth.com; httpbestbuy.com; htçblackplanet.com;

l7 l8
t9
20
21,

htþbordersbooks.com;httpbratz.com; httpcareerbuilder.com; httpcapitalone.com;
httpcapitolone.com; htçcarmax.com; httpcartonnetwork.com; httpcartoonetwork.com; httpcartoonnetwork.com; httpchewolet.com; httpchevy.com; httpcircuitcity.com;

22
23

httpcisco.com; httpciti.com; httpcitibank.com; httpciticard.com and httpciticards.com.
''

WWV/AMERICANAERLINES. COM''

; ; ; :

24
25

''

WWWAMERICANAIRLINESARENA. COM''

"V/WWAMERICANANIAGARA.COM" ; "WWWAMERICANARLINES.GOM"

26 27
28

WV/WAMEzuCANCRAFTSMANWIN. coM" ; " wWwAMERICANCURVES.COM"
"

WWWAMEzuCANFUND. COM" ; " WWWAMERICANFUNDS. COM',

;

"v/wv/AMEzucANGREEETING.coM" ; "WWWAMERICANHEARTASSO

COMPLAINT

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CIATION.COM"; "WWWAMERICANHOMEPARTNERS.COM"
"

;

wwwAMERICANMEADows.coM"

;

"

wwwAMEzucANTRAN

SAIR.

coM"

:

"WWWAMERICASFIRSTHOME.NET"; "WWWAMERIJET.COM"; "WWWAMIGOSADVENTISTAS.ORG"; "v/wwAMIN.oRG"; "v/wwAMITI.coM":
'WWV/AMORPOSTALES. COM" ; " WWWAMOUR.COM,,
;

4
5

6
7
8

"WWWAMROKHALED.COM"; "WWWAMTRACT.COM"; "WWWAMV/AYINDIA.COM", "WWWANALOG.COM"; "WWWAND.COM";
"WWV/ANGELPIN.NET" ; "WWWANGONOTICIAS.COM".

9

86.
Search Network.

Google includes millions of parked domains and error pages that have little to

l0
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no content, and that result in practically zero conversions, in both its Content Network and its

I2
13

87.

Given the illegality and/or low quality of these parked domain and error page

sites, Plaintiff and the Class would not agree to spend their advertising budgets on these

t4
15 T6 17 18 T9

distribution networks. However, Google designed its network in such a way that it was
impossible to opt out of the Adsense for Domains and/or AdSense for Errors programs.

88.

Even after providing limited ability to opt-out of the AdSense for Domains and

AdSense for Errors programs, Google still continues to conceal from the Plaintiff and the Class that those networks contain millions of illegal sites that infringe trademark, copyrights and

intellectual property laws.

20

89.

Google's practice of including parked domains within the Search Network is

2l
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misleading, since no actual searches are performed on these pages. Likewise, Google's practice

of including parked domains and error pages within the Content Network is also misleading,
since most of these sites include little or no content.

24 25

90.

Google violates its promise and duty to not place ads in pernicious spyware

programs. Google has done just that, and has charged AdWords advertisers for every click made
on spyware pop-up ads.

26
27 28

COMPLAINT

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91.

Google also represented that its advertisement would be "highly targeted."

2
a

When, in fact, Google enters into syndication agreements with companies that show random ads that are the opposite of "highly targeted."

J

4
5

92.

Google has otherwise acted unfairly, in bad faith, and in a manner that is

directly contrary to the interests of Adv/ords advertisers, and in its own pecuniary interest,
discharging its duties and obligations to AdWords advertisers.

6
7
8

H.

ContextualTargetingTechnology

93.

Google promises AdWords advertisers that it has sophisticated "Contextual

9

Targeting Tehchnology" that: "(c)an automatically match your ads to webpages in our content

l0
1l

network that are most relevant to your business. For example, an ad for a digital camera may
show up next to an article reviewing the latest digital cameras."
https :/iadwords. google. com/select/Login.

t2
13

94-

Google provides the following explanation and example of how "contextual

t4
15
T6

targeting" technology is used to maximize an Adwords ad placement: Google continually scans the millions of pages from the content network to look for relevan
matches with your keywords and other campaign data. When we find a match, your ad

T7 18 19

eligible to run on that page. Google's extensive web search and linguistic processing technol can decipher the meaning of virtually any content network page to ensure we're showing
most relevant ads. Consider the following example:

20

2l
22
23
i4*xilfsy N*rrs
åpet$ åffi,
'#"v*ty

ä*#*
l#s6
*r!@Æ" eê v*etk$rx

24
25

&rxwri*ë$ ëri¡*gå t'ft*$* eUp
sT*rte.S,

lÈtu*y ga+s,rr# *¡tr*r

*t

jÈu$.

i,* qh* c+*rttÈ*g, &

*a*er.*Ê

t;l*{r *æ

*

c{.lg

*f *+ffes,i* g#t

26 27 28
nct

l{fqu \e ye *

skut

F-*g abçutJau* fhe c+ffee, ourteclrno{ogy kãmws t}¿at itb Jarw the programnring Í+nguaçe. Ar* you get ã"rÍs ahuet ceffê#.

COMPLAINT

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98.

The site exclusion tool still does not provide a mechanism by which AdWords

advertisers can "exclude" illegal sites from a campaign, such as those that infringe trademarks,

copyrights, and other intellectual property laws.

4
5

99.

The site exclusion tool still does not provide a mechanism by which AdWords

advertisers can "exclude" sites and pages that fail to meet Google's pubtished guidelines,

6 7
8

policies, and procedures (i.e., gambling sites, pornography sites, etc.).

J.

Performance Reporting

100.

On Google's AdWords promotional/marketing pages, which are shown to

9
10
11

prospective customers prior to signing up for AdWords, Google states the following under "Reach More Customers"
:

Measure and optimize your results With the Placement Performance Report, you

12
13

visibility into where all your ads appear. Review your ad's performance on a site-by-si
basis to see impression, click, cost, and conversion data. and use this data to identi

l4
15 T6

well-performing sites to target more aggressively and low-value placements that requi
content optimization or exclusion.
https://adwords. google. com/select/login

t7 l8 t9
20
2T

101.

Google's Placement Performance Reports provide limited information only on

sites included in Google's Content Network. No such reports have ever been available for

Google's Search Network.

102.

Google does not automatically provide these reports to its AdWords customers.

Rather, the reports are generated only for AdV/ords advertisers that locate the appropriate page on Google's website and have the report generated.

22 23

103.

[n June 2007, Google f,rrst began offering limited data on the placement of

24
25

Ad\Mords ads on parked and error pages. However, until May 2008, the reports did not provide

specific (site-by-site) list of the parked and error pages where an ad appeared, rather the report simply aggregated the data into two lump-sum line items, called "Domain ads" and "Error page
ads."

26 27 28

COMPLAINT

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104.
Search Networks.

At no time prior to June 12,2007, did Google ever disclose to AdWords

advertisers that low-quality parked domain and error pages were included in both its Content and

4
5

105.

Without a site-by-site listing of which parked domains and error pages their ad

was placed on, advertisers could not adjust their advertising budgets on these sites. Nor could

6 7
8 9 10

they exclude some or all parked domains and error pages from receiving ad placement. By
aggregating this information, Google effectively prohibited advertisers from utilizing means

of

opting out of domain or error page ads using the AdWords interface.

106.

In response to complaints by advertisers, on May 2,2008, Google posted a

message titled "Where did

I park?" on its AdWords Agency Blog announcing that it had finally

ll
t2
13

changed the policy and was providing site-by site data for parked domains.

107.

Katharine Allan of Google's Agency Team wrote: "We recently added a new

level of detail to Placement Performance reports to answer this question. Placement Performance
reports give site-by-site performance metrics for the sites where your ads appeared within

I4 l5
t6 t7
18

Google's content network. Now, rather than seeing one consolidated entry for all parked domains

in your reports, you'll see separate rows displaying performance statistics for individual parked
domains."

108.
Content

Prior to May 2,2008, Google completely failed to disclose domain names, IP

t9
20

addresses, and associated performance data

of parked domain and error pages included in its

Network. Google

has never, and

still does not disclose this data for parked domain and

2l
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23

error pages included in its Search Network.

109. 110.

Google's conduct, as alleged herein, has injured the general public and

contravene well-established public policy.

24
25

Google's conduct, as alleged herein, has distorted the Internet sea¡ch system fo

public Internet users and has made it more difficult and time-consuming for Intemet users to
locate legitimate websites on the Internet, as they are repeatedly diverted through parked advertising pages that simply provide Google with "click" revenue.

26 27
28

COMPLAINT

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II

l

As a direct and proximate result of Defendant's conduct alleged herein,

Plaintiff and the Class were and continue to be unlawfully charged for services that Defendant
did not provide or that Plaintiffs and the Class did not agree to pay for.

4
5

ll2.

As a direct and proximate result of Defendant's conduct alleged herein,

Plaintiff and the Class were and continue to be charged grossly inflated amounts for advertising
through the AdV/ords program.

6 7
8

113.

As a direct and proximate result of the inclusion of illegal and low-quality sites

in the Google Network, Pulaski and the Class paid more for advertising and the cost participation in the AdWords program.

of

9

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11

114.

As a direct and proximate result of Defendant's conduct alleged herein,

Pulaskiand the Class have otherwise suffered injury and damage to their business and property.

T2
13

CLASS ALLEGATIONS
I
1

5.

Plaintiff brings this action pursuant to Federal Rule of Civil Procedur e 23(c)

t4

and (b)(3) on behalf of himself and the following Class ("the Class,'):

l5
16

All

persons or entities located within the United States who, within four years

preceding the filing of this Complaint, contracted for and participated in

t7 l8
I9
20

Google's AdWords program.

116. Excluded

from the Class are governmental entities, Defendant, any entity in

which Defendant has a controlling interest, and Defendant's officers, directors, affiliates, legal
representatives, employees, co-conspirators, successors, subsidiaries, and assigns.

2l
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23

Il7.
118.

Also excluded from the Class are any judges, justices, orjudicial officers

presiding over this matter and the members of their immediate families and judicial staff. Upon information and belief, Plaintiff alleges that the total number of Class

24
25

members is at least in the hundreds of thousands and that the members of the Class are geographically dispersed across the United States. Consequently, joinder of the individual Class members would be impracticable.

26
27 28

119.

There are many questions of law and fact conìmon to the representative

Plaintiff and the proposed Class, and those questions substantially predominate over any

COMPLAINT

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individualized questions that may affect individual Class members. Common questions of fact
and law include, but are not limited to, the following:

J

o o

Whether Google's representations regarding AdWords were false or misleading;

4
5

whether Google's breached its contracts with Plaintiff and the class:

6 7
8

whether Google, in violation of applicable law and its own stated policy, c Plaintiff and the members of the Class for ads that were placed on parked domain
error page websites;

¡ o ¡

Whether Google engaged in unfair, unlawful and/or deceptive business practices; V/hether Google failed to disclose material facts about its AdWords program; and

9
10

l1

l2
13

Whether or not Plaintiff and the members of the Class have been damaged by wrongs complained of herein, and if so, the measure of those damases and the na and extent of other relief that should be provided.

I4 l5
T6

I20. l2l.
Class action

Plaintiffs claims are typical of the claims of the members of the Class. Plainti

and all Class members have been similarly affected by Defendant's common course of conduct.

Plaintiff will fairly and adequately represent and protect the interests of the

17
18 T9

Class. Plaintiff has retained counsel with substantial experience in prosecuting complex and

litigation. Plaintiff and his counsel are committed to vigorously prosecuting this

action on behalf of the Class. Neither Plaintiff nor his counsel has any interests adverse to those

of the proposed Class.
20

2l
22
23

122.

Plaintiff and the members of the Class have suffered, and will continue to

suffer, as a result of Defendant's unlawful and wrongful conduct. A Class action is superior to other available methods for the fair and efficient adjudication of the present controversy,

24
25

joinder of all members of the Class would be impractical.

123.

Even if individual Class members had the resources to pursue individual

26 27
28

litigation, it would be unduly burdensome to the courts in which the individual litigation would
proceed. Individual litigation would cause delay and undue expense to all parties affected by Defendant's common course of conduct.

COMPLAINT

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124. The Class action device will allow a single court to provide

the benefits

of

unitary adjudication, judicial economy, and the fair and equitable handling of all Class members'
claims in a single forum. The maintenance of this action as a Class action will conserve the
resources of the parties and of the members.

J

4
5

judicial system, and will protect the rights of the Class

6
7 8

I25.

Furthermore, for many, if not most, Class members, a Class action is the only

feasible mechanism for legal redress for the harm alleged.

126. Adjudication

of individual Class members'claims against the Defendant would,

9
10
11

as a practical matter, be dispositive of the interests of other Class members not parties to the

adjudication and could substantially impair or impede the ability of other Class members to
protect their interests.

T2 13

FIRST CLAIM OF RELIEF (Breach of Contract)
127

t4
15

.

Plaintiff realleges the preceding paragraphs as if fully set forth herein.
and the class have standing to pursue this claim as Plaintiff and the

128. Plaintiff
as set forth above.

t6 t7
18

Class have suffered injury in fact and has lost money or property as a result of Google's actions

L29.

Plaintiff and Class members entered into the AdWords Contract and the Googl

I9
20

Universal Contract with Defendant Google. Plaintiff and Class member have performed all their obligations under said contracts.

of

2l
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23

130.

In breach of said Contracts, Google: (1) placed advertisements, and charged

Plaintiff and Class members for associated clicks, on its AdSense for Domains and AdSense for
Errors sites; (2) placed Plaintiffls and Class members' advertisements, and charged Plaintiff and
Class members for associated clicks, on domainsisites that infringe upon Plaintiffls and Class

24
25

members' own trademarks; (3) placed advertisements, and charged Plaintiffand Class members

26 27
28

for associated clicks, on domains/sites that violate trademark, copyright and intellectual property law, (4) overcharged Plaintiff and Class members for advertisements displayed through the AdWords program, and (5) charged Plaintiff and Class members for services they did not agree to pay for by hiding such charges for clicks on low-quality sites, illegal sites, or sites that violate

COMPLAINT

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Google's publicly disseminated written policies, procedures and guidelines (i.e, gambling sites,
pornography sites, etc.)

131.

Google knowingly and intentionally violates United States and intemational

4
5

trademark, copyright, and intellectual property laws, for its own cofirmercial gain, in the course

of administering its AdWords program.

6 7
8

132Class.

Google actively conceals its illegal conduct from Plaintiff and the putative

133.

As a direct and proximate result of Google's breach of contract as set forth

9

above Plaintiff and Class members have been damaeed.

l0

SECOND CLAIM FOR RELIEF
(Breach of Covenant of Good Faith and Fair Deating)

il
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134. 135.

Plaintiff realleges the preceding paragraphs as if fully set forth herein, and to

the extent necessary is plead in the alternative.

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15

Plaintiff has standing to pursue this claim as Plaintiff has suffered injury in fact

l6 l7
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and has lost money or property as a result of Google's actions as set forth above.

136. Class members have suffered injury in fact and have lost money or propeny as
a result

of Google's actions as set forth above.
137

-

Google had a duty to act in good faith and deal fairly with Plaintiff and the

20

Class in connection with said contracts and its obligations in administering the AdV/ords

program.

2l
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23

138139-

Google breached its duty of good faith and fair dealing to Plaintiff and the C

through its actions as alleged herein.
24 25

As a direct and proximate result of Googles' breach of the covenant of good

faith and fair dealing as set forth above Ptaintiff and Class members have been damased.

26
27 28

COMPLAINT

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THIRD CLAIM FOR RELIEF
(Violation of California Business & Professions Code Section 17200 Et Seq. -Unfair Conduct)

4
5

140.

Plaintiff realleges the preceding pamgraphs as if fully set forth herein and, to

the extent necessary, pleads this cause of action in the alternative.

6 I
8

l4l.
142.
a result

Plaintiff has standing to pursue this claim as Plaintiff has suffered injury in fact

and has lost money or property as a result of Google's actions as set forth above. Class members have suffered

inju.y in fact and have lost money or property

as

9 10
11

of Google's actions as set forth above

143. 144.

Google's actions as alleged in this complaint constitute "unfair" conduct

within

the meaning of California Business and Professions Code sections 17200 et seq.

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Google's business practices, as alleged herein, are "unfair" because they offend

established public policy and/or are immoral, unethical, oppressive, unscrupulous and/or

substantially injurious to its customers. Google's conduct is "unfair" because Google fails to
disclose that customers' ads are placed on parked domain and error page sites, and Google does

16
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not provide an effective means for customers to exclude their ads from appearing on these sites.

In fact, until March 2008, Google provided no means at all for customers to exclude their ads from appearing on these sites.

18

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21

145.

As a result of Google's "unfair" conduct, Plaintiff and members of the Class

expended money on advertising that they would not otherwise have spent, and received less

value for their advertising dollars than they should have received.

22
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146.

As a result of Google's "unfair" conduct, Plaintiff and members of the Class

have unknowingly been charged and paid for advertising on sites that actually infringe upon the Class members' own trademarks.

24
25

147.

Google's wrongful business practices alleged herein constituted, and continue

26 27
28

constitute, a continuing course of unfair competition since Google continues to market and sell
its products in a manner that offends public policy and./or in a fashion that is immoral, unethical, oppressive, unscrupulous and./or substantially injurious to its customers.

COMPLAINT

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148. Pursuant

to Cal. Bus. & Prof. Code $17203, Plaintiff and the Class seek an

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order of this court enjoining Google from continuing to engage in unlawful, unfair, and/or deceptive business practices and any other act prohibited by law, including those acts set forth in this complaint.

4
5

149. Plaintiff

and the Class also seek an order requiring Google to make

full

6 7
8

restitution of all moneys it has wrongfully obtained from Plaintiff and the Class, along with all
other relief allowable under Cal. Bus. & Prof. Code $17200 et seq.

FOURTH CLAIM FOR RELIEF (Violation of California Business & Professions Code Section 17200 Et Seq.-Fraudulent Conduct)

9
10

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150. 151.

Plaintiff realleges the preceding paragraphs as if fully set forth herein and, to

the extent necessary, pleads this cause of action in the alternative.

Plaintiff has standing to pursue this claim

as

Plaintiff has suffbred injury in fact

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15

and has lost money or property as a result of Google's actions as set forth above.

I52.
a result

Class members have suffered injury in fact and have lost money or property as

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of Google's actions as set forth above

153. Google's actions as alleged in this complaint constitute
154-

"fraudulent" conduct

within the meaning of California Business and Professions Code $17200 et seq.
Google's business practices, as alleged herein, are "fraudulent" because they are

20

likely to deceive consumers, including Plaintiff and members of the Class. Google fails to
disclose all material information to AdWords advertisers concerning the types of sites on which

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23

their ads will be displayed, and affirmatively conceals the fact that low-quality parked domains
and error pages are included in both its Content Network and its Search Network. Google failed

24
25

to disclose Class members advertisements would also appear on deceptive domains that would violate the Class members own trademarks resulting in them paying for "advertising" to receive

26 27
28

traffic from a user who intended to reach the Class member. Google failed to disclose to
advertisers, including Plaintiff and the Class, that, until March 2008, they would have no way to exclude their ads from appearing on these sites. Google continues to fail to provide an effective

COMPLAINT

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1

and adequate method of excluding ads from these sites, or to adequately disclose that any methodl

-t

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3

of excluding ads from these sites exists at

all.
less

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155.

As a result of Google's "fraudulent" conduct, Plaintiff and members of the Clas{

4
5

expended money on advertising that they would not otherwise have spent, and received

I
I

value for their advertising dollars than they should have

received.
sell

I

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156. Google's wrongful

business practices alleged herein constituted, and continue tol
I

constitute, a continuing course of unfair competition since Google continues to market and its products in a marurer that is likely to deceive

I
9
10

customers.
and the Class seek

I I

I

157.

Pursuant to Cal. Bus.

& Prof. Code ç I72l3,Plaintiff

an

I I

order of this court enjoining Google from continuing to engage in "fraudulent" business practicesl
and any other act prohibited by law, including those acts set forth in this

l1

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13

complaint. 158. Plaintiff and the Class also seek an order requiring Google to make full all

I
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restitution of all moneys it has wrongfully obtained from Plaintiff and the Class, along with
other relief allowable under Cal. Bus. & Prof. Code $17200 er seq.

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FIFTH CLAIM FOR

RELIEF

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(Violation of California Business & Professions Code S 17200 Et Seq.-Unlawful Conduct)

|

159. 160. 161. 162.

Plaintiff realleges the preceding paragraphs as if fully set forth herein and,

to

I

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the extent necessary, pleads this cause of action in the

altemative. above
as

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20

Plaintiff has standing to pursue this claim as Plaintiff has suffered injury in fact

I I
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25

and has lost money or property as a result of Google's actions as set forth

Class members have suffered injury in fact and have lost money or property

I I

a result of Google's actions as set forth

above

I

Google's actions as alleged in this complaint constitute an "unlawful" practice

within the meaning of California Business and Professions Code $17200 et seq. because
Google's actions are "unfair" and "fraudulent," as alleged above, and because they

I I

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26 27 28

violate
as

I
I

Califomia Business and Professions Code $17500 et seq., which proscribe false advertising,
alleged

I

below.
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COMPLAINT

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SEVENTH CLAIM F'OR RELIEF
(Unjust Enrichment)

J

172. 173.

Plaintiff realleges the preceding paragraphs as if fully set forth herein and, to

4
5

the extent necessary, pleads this cause of action in the alternative. Through the actions described above, Google has received money belonging to

6 7

Plaintiff and the Class through fees collected from ads placed on parked domains and error
websites, even though reasonable customers would have believed that they were not paying for
and would not be charged for ads placed on such websites.

I
9
10
11

174.
on such websites.

Google has also reaped substantial prof,rt by collecting and retaining revenue

from Plaintiff and the Class generated through clicks generated through ads that were displayed

12
13

175.

Google has received money belonging to Plaintiff and the Class resulting from

clicks on these ads.

t4

176. As a direct and proximate result of Google's misconduct as set forth above,
Google has been unjustly erniched.

l5
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177.

Google should not be permitted to keep sums that Google has unjustly received

as a result of its actions.

PRAYER F'OR RELIEF
WHEREFORE, Plaintiff, Adam Pulaski and the Class pray for relief as follows:

l9
20

a.
b.
alleged herein;

That the Court determine that the claims alleged herein may be maintained as

2l
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23

class action under Rule 23(a), (bX2) and (b)(3) of the Federal Rules of

Civil Procedure;

That the Court adjudge and decree that the Defendant has engaged in the

24
25

c.

That the defendant be permanently enjoined and restrained from, in any manner
and./,

directly or indirectly, continuing, maintaining, or engaging in the unfair, unlawful,
deceptive practices alleged herein;

26 27
28

d.

That plaintiff and the class members be

awarded

restitution, includi

disgorgement of profits obtained by defendant as a result of their acts of unfair. unlawful

COMPLAINT

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deceptive practices and acts of unjust enrichment and breach of the covenant of good faith

fair dealing;

eabove;

That the plaintiff and class members be awarded compensatory damages

4
5

all other available monetary and equitable remedies for the breach of contract claims identifi

6

f. gh.

That plaintiff and the class members be awarded both pre-and post-jud

I
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interest at the maximum allowable rate on any amounts awarded;

That plaintiff and the class members recover their costs

of suit.

inc

reasonable attorneys' fees as provided by law;

That plaintiff and the class members be awarded such other and further relief

1l

may be necessary and appropriate.

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JURY DEMAND
Pursuant to Rule 38 of the Federal Rules of Civil Procedure and the Constitution

of

United States, Plaintiff and the Class members demand atrial by jury for all issues so triable.

ls
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Dated: August 14,2008 R. ALEXANDER SAVERT (SBN r73r02) cADro zrRPoLI (sBN 179103)

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SAVERI & SAVERI,INC. I l1 Pine Street, Suite 1700 San Francisco, C4941 I 1-561
Telephone: (41 5) 217 -6810