Case Description

This case alleges that defendant Yahoo! Inc. improperly placed advertisers' ads into certain programs and web sites operated by third parties, allegedly in violation of Yahoo!'s contractual promises to advertisers. Specific practices alleged in the complaint:

• Placing advertisers' ads into spyware programs. Spyware is software installed on users' computers, either without users' consent or without users' informed consent, that takes actions averse to users' interests. For example, spyware often causes unwanted and annoying pop-up ads. The complaint alleges that Yahoo! promised not to show advertisers' ads in spyware, but that Yahoo! did show advertisers' ads in spyware, and that Yahoo! charged advertisers for resulting clicks.
• Placing advertisers' ads into typosquatting web sites. Typosquatting sites are domain names, or web addresses, that are identical or confusingly similar to the names of well-known companies, products, and trademarks, for example "washingtopnost.com" or "cartoonnetworik.com." The complaint alleges that Yahoo! promised not to show advertisers' ads in typosquatting web sites, but that Yahoo! did show advertisers' ads in typosquatting web sites, and that Yahoo! charged advertisers for resulting clicks.
• Placing advertisers' ads into "parking" and bulk registration web sites. The complaint alleges that Yahoo! promised not to show advertisers' ads in parking sites, but that Yahoo! did show advertisers' ads in parking sites, and that Yahoo! charged advertisers for resulting clicks.
• Charging Sponsored Search advertising rates for placements more properly described as Content Match. The complaint alleges that such placements are in breach of Yahoo!'s contractual obligations, and that such placements caused advertisers to be overcharged.
• Placing advertisers' "search" ads in random, untargeted placements, including in untargeted banner ads. The complaint alleges that such untargeted placements violate Yahoo!'s promise to target ads to users who have actually demonstrated an interest in the subject matter or keywords associated with such ads.