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LookSmart Hit With Potential Class Action Lawsuit Over Submission Program

By Danny Sullivan, Editor
The Search Engine Report, June 3, 2002


A proposed class action lawsuit claiming breach of contract, fraudulent business practices and misleading advertising has been filed against LookSmart over a recent change in how the company sells some of its commercial web site listings.

"LookSmart offered one thing to a lot of small businesses and signed a contract and unilaterally changed the program," said the lead attorney behind the case, Jeffrey L. Fazio, of Hancock Rothert & Bunshoft.

In April, LookSmart moved thousands of companies that previously had paid a one-time submission fee into a new cost-per-click listing program. Companies who refuse to pay the new, continuing fees risk being delisted when free credit given to them by LookSmart in association with the switchover runs out.

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