Google is taking legal action to stop companies from allegedly using the search giant's name to trick people into paying for supposed work-at-home kits advertised online and in e-mails.
The company filed a lawsuit on Monday in federal court in Salt Lake City against Pacific WebWorks and other, unnamed defendants alleging trademark infringement and dilution, unfair competition, federal cyberpiracy, and violation of consumer sales practices. The lawsuit can be amended to add the names of additional defendants as they are uncovered.
"This action seeks to stop a widespread Internet advertising scam that is defrauding the public by misusing the famous Google brand," the suit says. "The scam victimizes unsuspecting consumers by prominently displaying the famous Google mark, by suggesting sponsorship by the plaintiff Google Inc., and by urging consumers to obtain a kit supposedly showing them how to make money working from home with Google."
A call to Pacific WebWorks seeking comment on allegations of fraud was not returned on Monday.
People are targeted either via online ads, pop-up ads, or promotional e-mails that promise information on how to make money by working at home. The ads typically display the Google brand prominently and include a link to a site with what looks like legitimate news articles, blog postings, or social-networking posts and sites featuring testimonials from people claiming to have made thousands of dollars per month from the program.
Consumers are asked to pay an "instant access" fee for access to a members-only portal or a "shipping and handling fee" for a DVD that supposedly explains how to make money through the program, according to the lawsuit. Many victims who pay the fees, typically a few dollars, either do not get DVDs, they receive DVDs that contain viruses or they get access to an unrelated free site, such as Google's online help center, the suit says.
The defendants are part of a network that reuses Web sites and shares tools to perpetuate the scams with little effort, the lawsuit alleges. For instance, the same templates are used to generate fake testimonials, blogs, and news stories, often ones that are customized to the location of consumers, the lawsuit alleges.
There are numerous affiliates but Pacific WebWorks is believed to be one of the main operators behind many of the schemes, said Jason Morrison, a search quality engineer at Google.
"These scams play upon some powerful methods of persuasion. Not just by using Google's logo, but we often see 'as seen on CNN, Fox News and ABC,'" he said in an interview. "I don't know if people understand how easy it is to copy an image file on a Web page. They also try to use social proof by creating a fake blog, with a photo of the blogger from his wedding, the new car he bought, and explaining how he lost his job. They go to great lengths to string people along."
Google works to remove the fraudulent ads from its search results and ad network and to keep new fraud sites from popping up in the index, but new ones are created all the time, according to Morrison.
He suggested that people do some Web research before answering any ads and look to see if consumers have complained online about the company, as well as be skeptical of any offers that sound like they are too good to be true. Victims should contact their bank or credit card company and report fraudulent-looking results found in Google searches here and fraudulent-looking ads here.
More information from Google about the scams is in this Google blog post.
This isn't the first action taken against alleged work-at-home scams. The U.S. Federal Trade Commission obtained an injunction and asset freeze in Nevada against a group of sites operating a scam using the "Google Money Tree" name this summer. Some fraudulent sites were removed, but thousands remain, Google said.
Last month, a class action suit was filed in state court in Illinois against Pacific WebWorks by Barbara Ford, who is described as "elderly, retired and on a fixed income."
Ford claims she clicked on an ad on her AOL home page with a fake news article describing how one woman made $5,000 a month with the program. She alleges she paid $1.97 for a "Google Business Kit" and that her credit card was also charged $79.90. She called the company to request a refund and never received one, according to the lawsuit.
There also are a number of complaints listed about Pacific WebWorks on the Rip Off Report Web site.
Source:
http://news.cnet.com/8301-27080_3-10410831-245.html?tag=newsEditorsPicksArea.0
Web Site Design
Showing posts with label Advertising. Show all posts
Showing posts with label Advertising. Show all posts
Wednesday, December 9, 2009
Wednesday, October 14, 2009
Meebo tries to raise $25M in return of only 10% equity valuing the company at the whopping $250M
Meebo is a popular and rapidly growing web based instant messaging start up that was backed up by Sequoia Capital and is said to have roughly 4.6M unique visitors per month according to comScore’s publicly available stats. That’s valuing each of their visitors at the $54 mark, which is significantly more than what AOL has just recently paid for each of Bebo’s 22M visitors - $39 according our simple math. Many industry experts, commentators and bloggers have expressed their negative feelings about the potential deal and more concrete about its pre-money valuation. Anyone remember Slide and their pre-money valuation of $500M? Yet it was said then they had over 150M or so users worldwide, which, if true, valued their users at the $3 range.
Some analysts have even compared the deal’s value to the Bear Stearns one, which has just sold out for “only” $236M.
There is however something most of the technology blogs seem to have overlooked. Joshua Beil from Level 3 Communications has commented on one of the tech blogs that Meebo’s per user valuation could change quite substantially if one takes into account their unique visitors of the MeeboMe rooms widget. I’ve seen, he says, numbers in the 10-14M range and counting for just this application. Factor this in to the 4.6M uniques to Meebo.com and it’s at a discount to Bebo. We have no idea where he does take his numbers and what his affiliation with the company is, but if we take those numbers for real the $250M valuation does not sound ridicules anymore. In addition to that Venturebeat reports that Meebo has attracted 29 million monthly unique users worldwide, but they also say that some investors remain quite skeptical about Meebo and their business model. We have no clear idea where Venturebeat has come to that number of visitors.
The rumor is that Meebo has hired Montgomery & Co. to represent them in a new fundraising round that may value the company at a $250M. An interesting competition is forming on the scene there between Montgomery & Co. and Allen & Co., which is lately the investment bank behind pretty much all hot start ups that sold (got funded) or about to for hefty amounts (hefty valuations) in the valley such as Digg, Bebo, Slide, Technorati, among others.
What is also being said is that the company is looking to raise $25-30M in venture funding and if the valuation numbers are taken for real it means the VCs will take no more than 10% from Meebo. This is a whole lot more than the $60-70M that it was reportedly worth after a funding round last year.
Some big names in the social-networking space like Facebook and News Corp.’s MySpace.com are rumored to may possibly be interested in the deal. MySpace operates its own instant-messaging service, and Facebook is rumored to have one in the pipeline.
Montgomery and Co. has requested that all offers be in by Wednesday, and has told investors it has several parties interested at a valuation of $200M. The rumor goes here that at least one of the strategic investors isn’t interested in sharing the investment, preferring instead to buy Meebo entirely.
More about Meebo
Meebo launched in September 2005 and received funding from Sequoia Capital in December 2005 and Draper Fisher Jurvetson in January 2007. Today, Meebo’s users exchange over 100 million instant messages daily.In early 2007, Meebo gets another $9 million from Draper Fisher Jurvetson and Sequoia Capital. Skype’s lead investor and YouTube’s lead investor are teaming up. Tim Draper, one of the early investors in Skype, did the deal for DFJ. Meebo’s total funding is now $12.5 million.
More about Montgomery & Co.
Montgomery and Co. was founded in 1986 with a vision of providing strategic capital-formation advisory services to leading aerospace, defense and related technology companies.
Montgomery & Co. took advantage of the technology downturn and consolidation in the banking industry in 2000 to establish its reputation as the “go to” bank for growth companies that wished to evaluate their strategic options and raise capital. In doing so, Montgomery & Co. fulfilled its initial vision of providing a range of advisory services that encompassed M&A, private placements, comprehensive business-development analyses, and other value-added services.
In 2002 the firm was strengthened by investments from the world’s biggest bank, Mitsubishi UFJ, and West River Capital, of Seattle, WA. In 2003 the firm opened offices in Seattle, San Francisco and San Diego. At that time, the firm also significantly expanded its banking expertise within the Health Care and media industries, especially in the M&A practice.
In 2005, the firm was further strengthened by an investment from Tudor Investments which is the venture capital and private equity arm of Tudor Investment Corporation, an internationally recognized diversified investment management firm with $11.7 billion in assets.
Source:
http://web2innovations.com/money/2008/03/18/meebo-tries-to-raise-25m-in-return-of-only-10-equity-valuing-the-company-at-the-whopping-250m/
Professional Web Design
Some analysts have even compared the deal’s value to the Bear Stearns one, which has just sold out for “only” $236M.
There is however something most of the technology blogs seem to have overlooked. Joshua Beil from Level 3 Communications has commented on one of the tech blogs that Meebo’s per user valuation could change quite substantially if one takes into account their unique visitors of the MeeboMe rooms widget. I’ve seen, he says, numbers in the 10-14M range and counting for just this application. Factor this in to the 4.6M uniques to Meebo.com and it’s at a discount to Bebo. We have no idea where he does take his numbers and what his affiliation with the company is, but if we take those numbers for real the $250M valuation does not sound ridicules anymore. In addition to that Venturebeat reports that Meebo has attracted 29 million monthly unique users worldwide, but they also say that some investors remain quite skeptical about Meebo and their business model. We have no clear idea where Venturebeat has come to that number of visitors.
The rumor is that Meebo has hired Montgomery & Co. to represent them in a new fundraising round that may value the company at a $250M. An interesting competition is forming on the scene there between Montgomery & Co. and Allen & Co., which is lately the investment bank behind pretty much all hot start ups that sold (got funded) or about to for hefty amounts (hefty valuations) in the valley such as Digg, Bebo, Slide, Technorati, among others.
What is also being said is that the company is looking to raise $25-30M in venture funding and if the valuation numbers are taken for real it means the VCs will take no more than 10% from Meebo. This is a whole lot more than the $60-70M that it was reportedly worth after a funding round last year.
Some big names in the social-networking space like Facebook and News Corp.’s MySpace.com are rumored to may possibly be interested in the deal. MySpace operates its own instant-messaging service, and Facebook is rumored to have one in the pipeline.
Montgomery and Co. has requested that all offers be in by Wednesday, and has told investors it has several parties interested at a valuation of $200M. The rumor goes here that at least one of the strategic investors isn’t interested in sharing the investment, preferring instead to buy Meebo entirely.
More about Meebo
Meebo launched in September 2005 and received funding from Sequoia Capital in December 2005 and Draper Fisher Jurvetson in January 2007. Today, Meebo’s users exchange over 100 million instant messages daily.In early 2007, Meebo gets another $9 million from Draper Fisher Jurvetson and Sequoia Capital. Skype’s lead investor and YouTube’s lead investor are teaming up. Tim Draper, one of the early investors in Skype, did the deal for DFJ. Meebo’s total funding is now $12.5 million.
More about Montgomery & Co.
Montgomery and Co. was founded in 1986 with a vision of providing strategic capital-formation advisory services to leading aerospace, defense and related technology companies.
Montgomery & Co. took advantage of the technology downturn and consolidation in the banking industry in 2000 to establish its reputation as the “go to” bank for growth companies that wished to evaluate their strategic options and raise capital. In doing so, Montgomery & Co. fulfilled its initial vision of providing a range of advisory services that encompassed M&A, private placements, comprehensive business-development analyses, and other value-added services.
In 2002 the firm was strengthened by investments from the world’s biggest bank, Mitsubishi UFJ, and West River Capital, of Seattle, WA. In 2003 the firm opened offices in Seattle, San Francisco and San Diego. At that time, the firm also significantly expanded its banking expertise within the Health Care and media industries, especially in the M&A practice.
In 2005, the firm was further strengthened by an investment from Tudor Investments which is the venture capital and private equity arm of Tudor Investment Corporation, an internationally recognized diversified investment management firm with $11.7 billion in assets.
Source:
http://web2innovations.com/money/2008/03/18/meebo-tries-to-raise-25m-in-return-of-only-10-equity-valuing-the-company-at-the-whopping-250m/
Professional Web Design
Subscribe to:
Posts (Atom)