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Suit Sheds Light on e-Commerce Fraud

By Charles Toutant

A New Jersey online ad agency claims in a suit filed in federal court in Newark that it was defrauded by artificially generated Web traffic on a company's website, an issue e-commerce attorneys said is “extremely prevalent,” but rarely litigated.

In Congoo v. Sell It Social, Congoo LLC, trading as Adiant, is seeking to rescind a one-year contract it signed with Sell It Social, a New York company operating an e-commerce website called Rebel Circus, which sells novelty T-shirts and coffee mugs. Adiant claims Sell It Social is charging it $300,000 in fees based on Web traffic counts on the Rebel Circus site that are largely generated by “click farms” or other artificial means.

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