Source : The Wall Street Journal.
https://www.wsj.com/articles/uber-sues-mobile-agency-alleging-ad-fraud-1505787048?cx_testId=16&cx_testVariant=cx&cx_artPos=1&cx_tag=pop&cx_navSource=newsReel#cxrecs_s
Date : May 24, 2018.
Title : Uber Sues Mobile Agency Alleging Ad Fraud.
Article Summary
The article is about the lawsuit filed by the Uber Technology Company against Fetch Media Limited. The complaint alleges that the agency presented the wrong information on the effectiveness of their mobile adverts, they failed to prevent fraudulence and did not give back to Uber the amount returned as the discount. Thus, the company is charging the agency for both negligence, fraud, and breach of contract. Basically, the agency was supposed to buy and place mobile advertisements to promote downloading of the Uber App by the potential customers and drivers. According to the suit, the agency purchased nonexistent ads which led to a loss of $50 million and that the technology company seeks at least $40 million from the lawsuit.
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Fetch management denied the allegations saying that Uber is trying to divert the attention from their unethical acts of failing to pay their suppliers. The Chief Executive said that the agency is doing all it can to fight ads fraudulence with the help of the clients and suppliers. In addition, the complaint added that the agency did not give Uber back the discount received from the advertising companies thus overcharging the firm. It also placed Uber advert in on websites that the company had warned against.
Opinion
This is a civil issue because it involves a conflict between two private parties; Uber and Fetch Company. Usually, when either of the party that is in agreement fails to fulfill their duties, the offended party has the right to sue the earlier. In this case, Fetch Company should pay Uber for the damages incurred as a result of their fraudulent adverts. Besides, the agency did also breach the contract by putting the adverts on the wrong websites thus failing to reach the potential clients.
