Google and YouTube Reportedly Violated Terms for Ad Deals and Could Be on the Hook for Millions of Dollars

Most would say the likes of Google and YouTube are cornerstones to the foundation of the internet. Unfortunately for corporate advertisers, that reputation appears to be on thin ice. In a brutal new report from the Wall Street Journal, it's said the sites have violated standards it put in place regarding an advertising distribution service it offers. As a part of the company's ever-growing portfolio, Google Video Partners serves an ad service that places advertisements for companies on third party websites with Google charging a premium as it serves as the middle-man.

As a part of this business structure, the company has reportedly promised its customers that ads will only be run on high quality websites and located above the content on any website the ads appear. The videos are promised played with audio and the brands would only pay for the ads that weren't skipped by users. Now, the Journal reports Google violated those standards upwards of 80-percent of the time.

The Journal says it's obtained research from Adalytics, a firm that helps brands which advertisements have appeared on which sites. According to Adalytics, Google Video Partners has placed ads off to the margins of websites, muted ads, and placed ads on websites that don't meet Google's own quality standards for monetization.

Google denied any wrongdoing in a statement to the paper. "As part of our brand safety efforts, we regularly remove ads from partner sites that violate our policies and we'll take any appropriate actions once the full report is shared with us," the company said in its statement.

Some of those who've worked with Google Video Partners plan on inquiring about refunds for those ads that didn't meet the aforementioned benchmarks.

"This is an unacceptable breach of trust by YouTube," UM Worldwide advertiser Joshua Lowcock told the Journal. "Google must fix this and fully refund clients for any fraud and impressions that failed to meet Google's own policies."

AIDEM CEO Giovannbi Sollazzo added, "I feel cheated. What I requested to buy was not what I got. This should entitle me to a refund for invalid traffic."

Some of the brands whose ads reportedly didn't meet the standards include American Express, Disney+, Johnson & Johnson, Samsung, and Sephora, amongst others including Meidcare, the United States Army, and the Social Security Administration. An exact cost of affected adds isn't available, though some expect Google could be force to refund millions to advertisers.