Court denies class status to Facebook advertisers

Advertisers accuse social network of breach of contract, violating unfair competition law

Facebook Inc. scored yet another legal win last week.

On Friday, an Oakland, Calif., district judge denied class action status to a group of advertisers who sued Facebook in 2009. The advertisers accused the world’s largest social network of overcharging them on their “cost-per-click” contracts, which required them to pay fees each time Facebook users clicked their ads. The advertisers say Facebook breached its contract and violated California’s unfair competition law because it charged them for nonexistent clicks, for clicks that didn’t open, for clicks that server problems caused and for accidental multiple user clicks.

Ashley Post

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