Uber is taking advertising agency Fetch Media to court for click fraud, alleging that the firm improperly billed Uber for “fake“ online ads and took credit for app downloads it had nothing to do with, according to Bloomberg.
The company said it discovered something was amiss when it canceled a campaign on the conservative website Breitbart, where Fetch was placing Uber ads. As part of the lawsuit, Uber plans to seek at least $40 million in damages, according to people familiar with the matter, who asked not to be identified disclosing legal plans.
“We are shocked by Uber’s allegations which are unsubstantiated, completely without merit, and purposefully inflammatory so as to draw attention away from Uber’s unprofessional behavior and failure to pay suppliers,“ Fetch CEO James Connelly said. “We vigorously deny the allegations from Uber and will be responding robustly to ensure we set the record straight.“
Going on the offensive in court is a rare move for Uber. The company is a plaintiff in only two federal cases, according to data compiled by Bloomberg. Meanwhile, it has been a named defendant in about 250 federal cases. The data aren’t comprehensive but show Uber is usually on the defensive.
Online advertising fraud has been a problem for the industry since the dawn of the internet. The practice has grown more sophisticated in recent years along with the amount spent on such ads. Fetch has acknowledged the challenge publicly and said it was working with research firm Forensiq to “fight against mobile ad fraud.“
From 2015 to early 2017, Uber paid more than $82.5 million for advertisements overseen by Fetch, according to the complaint. Uber has refused to pay more than $7 million that Fetch has said it owes. Connelly said there is “no basis to these claims“ relating to ad-fraud as a reason not to pay it’s invoices. “Fetch takes ad fraud extremely seriously and has been working with clients and suppliers to minimize its impact within ad networks,“ he said.
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