Criteo and Steelhouse legal spat escalates

Legal case between ad retargeting vendors in the US

The legal dispute between ad retargeting vendors, Criteo and SteelHouse, has gone up yet another notch after Criteo filed papers that feature several SteelHouse customers claiming to have been deceived by its rival.

The papers filed on 15 August include sworn testimony from several of SteelHouse’s clients claiming the vendor went against established marketing measurement practices, along with industry expert commentary that Criteo claims demonstrates SteelHouse’s unacceptable industry conduct.

Criteo launched legal action against its ad tech competitor on 13 June in the California District Court, claiming both click fraud as well as a misrepresentation of its services. Specifically, is alleges SteelHouse used a counterfeit click fraud scheme to trick e-tail clients into thinking that Internet users had clicked on SteelHouse-placed ads when they did not. It also claims SteelHouse subsequently took credit for online sales attributable to Criteo and other online marketing vendors as well as e-tail clients’ own direct Internet traffic.

Criteo alleges the practice, which has disadvantaged partners and competitors and which SteelHouse has used to inflate its performance, has been running since at least May 2015. Both companies operate on a pay-per-click model.

In July, SteelHouse filed a counterclaim, alleging Criteo had “resorted to gamesmanship and unlawful tactics” in a bid to both discredit SteelHouse as well as shield its own artificially inflated click count numbers.

“By falsely inflating its click count numbers, Criteo has deceived its own customers, and diverted actual and potential customers from SteelHouse by promising inflated click rates,” the lawsuit alleges.

“Criteo has compounded that behaviour by making false, misleading and malicious statements about SteelHouse, directly to its customers, prior to the filing of any lawsuit. These false allegations have not only caused SteelHouse substantial harm by damaging its reputation in the ad tech industry, but have also resulted in loss of actual and potential clients, and loss of revenue.”

Criteo returned the sally on 25 July, saying it will continue to prosecute SteelHouse and calling the latter’s claims both baseless and a deflection away from its own misconduct.

“SteelHouse’s counterfeit click fraud scheme has harmed and continues to harm both Criteo and the online advertising industry as a whole and should be enjoined,” it stated in its latest documents, filed 15 August.

The question of views versus last-click attribution

Among the latest papers filed are several testimonies from purported SteelHouse and Criteo customers, along with industry experts, supporting Criteo’s claims and criticising SteelHouse’s practices. Several of these refer to SteelHouse’s use of an algorithm to claim impressions and views from end consumers that directly contradicts the last-click attribution model used by many of its former customers.

The declarations of Leah Bliss, a senior specialist in external marketing at Vistaprint, and Elyse Burns, lead for channel marketing at Vistaprint, states that the company worked with both vendors prior to the legal dispute.

In a statement, dated 10 August, Bliss said Vistaprint terminated dealings with SteelHouse after it allegedly discovered SteelHouse had “used malicious code to make it appear as though an Internet user clicked on a SteelHouse-placed advertisement event though no such click occurred”. The practices also contradicted to the last-click attribution model uses to evaluate marketing vendor performance at Vistaprint.

“In its Opposition, SteelHouse asserts that its code was meant to allow SteelHouse to receive credit for ‘view throughs’ or impressions,” the statement reads. “SteelHouse apparently believes it should receive credit for views even though there was no click.”

Another testimony, from paid-for industry expert witness, Hugo Loriot, media technologies director at fifty-five SA, alleges “SteelHouse is manipulating Google Analytics to falsely attribute conversion credit to SteelHouse instead of Criteo”.

“SteelHouse’s manipulation does not allow e-tailers to fairly and correctly use attribution models being applied by Web analytics systems like Google Analytics,” Loriot claimed in his testimony. “SteelHouse’s code is interpreted by Google Analytics as an Internet users clicking on a SteelHouse advertisement, where no such click occurred.”

The hearing on the Motion for Preliminary Injection is up before the Californian District Court on 12 September.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

How to create profitable pricing

How do we price goods and services? As business leaders, we have asked ourselves this question since the history of trading.

Lee Naylor

Managing partner, The Leading Edge

Sport and sponsorship: The value of event sponsorship

Australia’s cricketers captured the nation’s attention during their recent run to the semi-final of the ICC Men’s World Cup. While the tournament ultimately ended in defeat, for over a month it provoked a sense of belonging, hope and empowerment for millions of people across Australia. Cricket, and sport in general, has a near-unique ability to empower individuals, irrelevant of their background, demographic or nationality.

Nikhil Arora

Vice-president and managing director, GoDaddy India

AI ethics: Designing for trust

As artificial intelligence (AI) becomes much more prevalent and increasingly a way of life, more questions are being asked than answered about the ethical implications of its adoption.

Katja Forbes

Founder and chief, sfyte

I spend a lot of time in my professional life as a provider of marketing solutions trying to persuade customers that CX, UX, UI and Custo...

sketharaman

Gartner VP: Why CMOs and CIOs must band together to make CX a discipline

Read more

I live the best deals at LA Police Gear.

Tyrus Rechs

6 Ways to ramp up Social Media to Your Web Design

Read more

Its absolute over priced acquisition. The CEO, must be fired for this all cash transaction. Absolutely no justification for prospective P...

about_face

Analysts question long-term play of SAP's acquisition of Qualtrics

Read more

Very well written Nikhil! Indeed this is a big ticket investment, but the impact on brand, sales and employee motivation should make it w...

Yugal Sachdeva

Sport and sponsorship: The value of event sponsorship

Read more

As someone with both experience in marketing and working with UiPath both, I can say that I cannot wait to see more marketing processes u...

CiGen RPA

What robotic process automation can do for marketers

Read more

Latest Podcast

More podcasts

Sign in