Is Click Fraud Illegal? What the Law Says Across Different Countries

“Is click fraud illegal?” – this is a question we get from customers quite often (enough for us to write a post about it!). As more marketing dollars move to digital platforms, the impact of click fraud is becoming impossible to ignore. What may have been considered a minor inconvenience in years past, now poses significant legal challenges.

Companies may have to navigate a complex web of international laws to safeguard their advertising efforts. This article provides a detailed look at the legal repercussions of click fraud, and examines how different countries approach this growing problem. 

Think click fraud is just plain annoying? Think again..because in many countries, the law views it as a serious crime, and the consequences can be severe. From fines to imprisonment, the legal ramifications of click fraud vary widely depending on where you are and how serious the offense is.

United States 🇺🇸

In the United States, click fraud can be prosecuted under several federal and state laws:

Federal Laws

1. 1. Computer Fraud and Abuse Act (CFAA): This federal law makes it illegal to intentionally access a computer without authorization or exceed authorized access. Click fraud can fall under this act if it involves unauthorized access to systems.
   2. Wire Fraud Statute: This law criminalizes any schemes to defraud that involve “electronic communications”. Click fraud can be prosecuted as wire fraud if it involves deceit and financial loss.

The Federal Trade Commission (FTC) plays a role in regulating online advertising practices and can take action against fraudulent activities.

State Laws

Several states have specific laws addressing computer crimes and fraud that can apply to click fraud:

• • California: Under the California Penal Code, unauthorized access to computer systems and data, including click fraud, can be prosecuted with penalties including fines and imprisonment.
  • New York: New York State law includes provisions against computer tampering and fraud, which can encompass click fraud activities.
  • Texas: The Texas Penal Code criminalizes various forms of online fraud, including click fraud, under its computer crimes statutes.

European Union 🇪🇺

In the EU, click fraud is addressed through a few main legal frameworks:

• General Data Protection Regulation (GDPR): While primarily focused on data protection, the GDPR also covers issues related to the misuse of personal data, which can include data used for fraudulent activities like click fraud. Violations can result in substantial fines.
• Unfair Commercial Practices Directive (UCPD): This directive prohibits unfair business practices, including deceptive and fraudulent activities that distort consumer behavior. Click fraud can be prosecuted under this directive if it can be shown to deceive or mislead consumers.

Individual member states may also have additional laws and regulations that address click fraud specifically (many of which we cover below), often with severe penalties including both fines and imprisonment.

United Kingdom 🇬🇧

In the United Kingdom, click fraud is primarily dealt with under the:

• Fraud Act 2006: This act makes it illegal to commit fraud by false representation, failing to disclose information, or abuse of position. Click fraud can be prosecuted under this act if it involves deception to gain financial advantage.
• Computer Misuse Act 1990: Similar to the CFAA in the U.S., this act criminalizes unauthorized access to computer systems. Engaging in click fraud using unauthorized methods can lead to prosecution under this act.

Penalties under these laws can be severe, including substantial fines and imprisonment for serious offenses.

Australia 🇦🇺

In Australia, click fraud can be prosecuted under:

• Criminal Code Act 1995: This act includes provisions against various forms of cybercrime, including unauthorized access to data and systems. Click fraud can be addressed under these provisions.
• Australian Consumer Law (ACL): This law prohibits misleading and deceptive conduct in trade or commerce. Click fraud, if it involves deceptive practices to influence consumer behavior, can be prosecuted under ACL.

Penalties for click fraud in Australia include fines and potential imprisonment, depending on the severity of the offense.

Canada 🇨🇦

In Canada, click fraud is addressed through:

• Criminal Code of Canada: This code includes provisions against fraud and unauthorized use of computer systems. Click fraud can be prosecuted under these provisions if it involves deceit or unauthorized access.
• Competition Act: This act prohibits deceptive marketing practices. (click fraud can fall under this act if it involves misleading advertising metrics)

Other International Laws

Various countries around the world have their own laws and regulations addressing click fraud:

• India 🇮🇳 The Information Technology Act, 2000, addresses cyber crimes, including click fraud, with penalties that can include imprisonment and fines.
• Japan 🇯🇵 The Act on the Prohibition of Unauthorized Computer Access criminalizes unauthorized access to computer systems, which can include click fraud activities.