The IUP Journal of Law Review
Detecting and Preventing Click Fraud: The Economic and Legal Aspects

Article Details
Pub. Date : April, 2019
Product Name : The IUP Law Review
Product Type : Article
Product Code : IUPLR41904
Author Name : C P Nandini
Availability : YES
Subject/Domain : Law
Download Format : PDF Format
No. of Pages : 12



The recent development and growth of technology has forced the augmentation of e-commerce. This growth has encouraged the online businesses enormously, and one such business is online advertisements. The online businesses have built up various advertising models to increase their revenues. One such preferred model is the Pay-Per-Click model, considered to be one of the most efficient and effective models. The success of this model has also made it susceptible to click frauds, one of the underestimated frauds in the e-commerce-related frauds. The click spammers are active in committing such frauds either for commission, or it is used as a tool by the businesses to throw away the competitors from the business by artificially increasing the prices for advertising. The click fraud losses are estimated to be hundreds of billions of dollars, affecting the advertising industry in a huge way. Approximately, click frauds account for 10-40% of losses in the annual revenue loss to the industry. This paper examines the economic and legal aspects of the click fraud with special reference to the lacuna in law making to deal with the problem. It also highlights the challenges in regulating such frauds and the lack of seriousness on the part of the industry as well as the law makers.


For a long time, immense hype has been created about the programs showcased in the media and its ratings (like TRPs-Television Rating Point), something that is common in all forms of media. These ratings (unless scientifically authenticated in a few instances) are maneuvered. The advertising industry is greatly influenced by such propaganda and the influence is seen in the newspapers, magazines, television and radio, and the same has been extended to online advertisements. The advent of electronic commerce has encouraged the online advertising business models. It is one of the best models in the 21st century and is expected to grow in the cyberspace.