Fetch Sues Uber for Unpaid Charges
Uber Technologies Inc. was sued by a British mobile advertising agency. The agency is forcing the ride-hailing company to pay millions of dollars that the company had refused to pay after claiming that the ads being generated were fraudulent.
Last Tuesday, the Fetch Media Ltd. filed its lawsuit in the same federal court in California, where Uber had sued Fetch in September, accusing the advertising agency for charging the ride-hailing company for nonexistent, non-viewable or fake ads, and failing to pass back rebates and commissions.
Uber voluntary dismissed the lawsuit on December 22, two weeks after the case was reassigned to Yvonne Gonzales Rogers, a U.S. District Judge, and the judge said that it would instead pursue related claims in a San Francisco state court.
Fraud in advertisement, also known as click fraud, is a persistent issue in online advertising, this occurs when automated programs mimic legitimate users by clicking ads.
The London-based unit of Dentsu Inc. in Japan, Fetch, suggested that Uber dismissed its federal case on concern that it might lose after it was assigned to Rogers, who has overseen other litigation involving the San Francisco-based company.
Fetch asked that Rogers should be assigned to determine both companies’ contractual responsibilities, and direct the ride-hailing company to pay more than $19.7 million on invoices still owed for 2017.
“Fetch does not believe that Uber can avoid federal-court scrutiny of its incorrect contract theories so easily,” the company stated.
However, Uber did not respond for any comments on Wednesday.
Last May, The Association of National Advertisers, a trade group, assessed that marketers would lose $6.5 billion in 2017 because of fake web traffic caused by “bots.”
Uber told in September that the company hired Fetch to place ads to encourage new riders to download the Uber app, and it would pay for “legitimate clicks” that helped attract riders.
The company said that Fetch mistakenly claimed credit for app downloads that happened without ads ever being clicked. Uber told that it paid the advertising agency with more than $82.5 million.
The alleged fraud surfaced in early 2017, according to the ride-hailing company, as consumers began complaining about where its ads showed.
The advertising agency, Fetch, called Uber a “faithless business partner” in court papers. The agency also said that it had helped Uber to monitor ad fraud despite not being contractually required.
Fetch also stated that its work helped Uber register more than 35 million riders.
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Allison W. Bennett | January 04, 2018