LinkedIn Inaccurate Overcharges for Advertising Class Action

LinkedIn is known for its services in bringing together employment seekers and employment offers, calling itself “the place to find and be found.” However, it also offers other services, including advertising. The complaint for this class action alleges that LinkedIn’s measurement systems for its advertising impressions and views and that it therefore overcharged those who paid for these services.

The class for this action is all persons or entities who, during the applicable statutes of limitations, paid for advertisements placed on LinkedIn.

The complaint opens its Nature of the Action section by stating, “On November 12, 2020, Defendant LinkedIn stated on its own blog that ‘[i]n August, our engineering team discovered and then subsequently fixed two measurement issues in our ads products that may have overreported some Sponsored Content campaign metrics for impression[s] and video views.’” According to the complaint, LinkedIn admitted that the issues went undetected and influenced measurements for advertisers over a period of two years.

The complaint points out that LinkedIn’s comments on the problem do not outline “the extent of the damage to their customers…” and suggests that the platform may have other problems or that the problems already discovered may not have been fully fixed.

It alleges, “Above and beyond simply overpaying for mismeasured ads, [advertisers] paid for an unknown number of ineffective ads, losing out on the opportunity to serve effective ads that would have fulfilled the purposes of the advertisements.” Advertisers have therefore lost out on the chance to “[take] their ad dollars to other competitive platforms.”

LinkedIn has more than 700 million users in total, with more than 260 million being active on a monthly basis. This, the complaint says, “creates a robust and active audience” for advertising. According to the complaint, advertising on the platform is not cheap; it claims that LinkedIn charges “extortionary amounts” for it.

The complaint quotes a Wall Street Journal article description of the problems: With some Apple iOS devices, “[i]f a LinkedIn user scrolled past a video ad while the video was buffering, for example, the ad would autoplay even when out of view, but [the play would] still be tracked and logged as a video view or completion.” This may have resulted in overstated video views and view-through rates. “The company also said it may have been overreporting impressions and sponsored-content campaigns in the LinkedIn feed—for example, in cases when users would rotate their phones or quickly move to other parts of the app…”

LinkedIn announced that it had discovered the problem in August 2020, but did not fix it or give advertisers notice of it for two months.

Among the counts are accounting, fraud, and violations of California’s Unfair Competition Law.

Article Type: Lawsuit
Topic: Accounting and Charges

Most Recent Case Event

LinkedIn Inaccurate Overcharges for Advertising Complaint

November 20, 2020

LinkedIn is known for its services in bringing together employment seekers and employment offers, calling itself “the place to find and be found.” However, it also offers other services, including advertising. The complaint for this class action alleges that LinkedIn’s measurement systems for its advertising impressions and views and that it therefore overcharged those who paid for these services.

LinkedIn Inaccurate Overcharges for Advertising Complaint

Case Event History

LinkedIn Inaccurate Overcharges for Advertising Complaint

November 20, 2020

LinkedIn is known for its services in bringing together employment seekers and employment offers, calling itself “the place to find and be found.” However, it also offers other services, including advertising. The complaint for this class action alleges that LinkedIn’s measurement systems for its advertising impressions and views and that it therefore overcharged those who paid for these services.

LinkedIn Inaccurate Overcharges for Advertising Complaint
Tags: Advertising, Inaccurate Accounting, Overcharges for Services