LinkedIn Battles Plaintiffs in Lawsuit Over Inflated Ad Pricing
A lawsuit against LinkedIn has been brought forth in California alleging that the company systemically overcharged for ads on its site. Supposed measurement errors inflated the price of LinkedIn advertising, and these errors persisted for some time because of the company’s use of internal audits rather than a third party.
LinkedIn’s ad service charges customers based on agreed upon interactions with their content. For instance, if a company purchases ad space on LinkedIn, they will be charged based on how many times users click on their ad or view their ad’s video content.
The suit claims that the site allowed rampant invalid activity that inflated these interaction metrics. This includes interactions from non-humans or accidental clicks. Because of LinkedIn’s internal audit practice, fraudulent billing for these invalid interactions was allowed to proliferate, meaning thousands of customers were overcharged.
LinkedIn has moved to dismiss the case on the grounds that California Unfair Competition Law (UCL) was not violated because the plaintiffs are corporations, so their purchase of overpriced ads does not constitute harm to the general public or individual consumers.
The plaintiffs are mainly small businesses, who seek to recoup some of the money they overpaid for ads. They claim LinkedIn was aware of the invalid interactions and allowed the practice to continue. Mitena Partners will be closely monitoring this case as litigation continues. If the case gains class certification, we will be available to help companies and individuals participate in order to obtain the compensation they deserve.