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LookSmart Hit With Potential Class Action Lawsuit Over Submission ProgramBy
Danny Sullivan,
Editor
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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