Here is Google Chief Economist, Hal Varian, talks about How Google Ad Auction Works. Couple points:
Here is the news about a guy sues Google for cancallation and win the case. So basically, Google cancelled that guy’s adsense account with 721$ in it. The guy filed a small claim again Google for terminationof contract.
In fact, clause 6 of the AdSense for Content Terms and Conditions does not allow Google to terminate accounts for “no” reason–only “any” reason. Much to my amusement, the judge interrupted her to make a point that sounded familiar.
“But you couldn’t terminate my account because of the color of my eyes, could you? I have brown eyes. You couldn’t terminate my account because of that.”
Ms. Milani reiterated her previous arguments, but the judge didn’t buy them. “I don’t think I have the power here in Palo Alto small claims court to make you reinstate his account, but I think you owe this young man $721,” he said finally. “I think there might be money in Google’s treasury for that.”
At the end, he won and get back his money from Google. I think a lot of people can do exactlly the same. May be even a class action lawsuit will be justified.
http://www.huffingtonpost.com/aaron-greenspan/why-i-sued-google-and-won_b_172403.html