Marketing Law News: Facebook sued for unfair advertising practices!

Legal news for California business litigation  attorneys. Unified ECM is seeking a class action lawsuit, which charges Facebook with unfair advertising practices.

California business litigation lawyers alert-social networking site, Facebook, sued for overcharging advertisers who purchase ad space on Facebook’s website.

San Francisco, CA—The popular social networking website, Facebook, is named in a lawsuit by Unified ECM Inc. for claims of overcharging advertisers for ad space on Facebook’s website. The lawsuit claims Facebook over charges advertisers based on the reported number of consumers who view the ads on a daily basis, as reported by the Daily Herald.

In the lawsuit, Unified ECM v. Facebook, U.S. District Court for the Northern District of California (San Jose) was filed on Tuesday, July 28, 2009. The Beverly Hills, California-based Unified ECM, who were advertising on Facebook, allege they only had two options to choose from when buying advertising space from the social networking giant. Advertisers are required to pay a pre-determined amount each time a Facebook user clicks on their ad, or pay a specified amount for every 1,000 page views, or impressions of the specific ad. The marketing lawsuit is seeking class action status, or group status, which states they were “wrongfully charged for non-existent, fraudulent or invalid clicks.”

According to Wikipedia Facebook, which is owned under Facebook, Inc., which has a reported 250 million users worldwide. Facebook is a social networking site where users can add friends, join networks, upload pictures, send messages and update their own personal webpage. In February 2009, a study ranked Facebook as the most used social networking site by worldwide active users, MySpace followed in second place.

Nicole Howley-Legal news for California lawyers representing marketing law claims.