GREENSBORO, N.C.--(BUSINESS WIRE)--On Tuesday, July 7, Market America, a Product Brokerage and Internet Marketing company filed a lawsuit against Google, Inc. and LTech Consulting LLC in the United States District Court for the District of Delaware. The suit arises from Google and LTech overpromising the enterprise search capabilities they could deliver to Market America.
Google and LTech (a Google partner and member of the Google Enterprise Professional program) promised to provide an enterprise search platform with the flexibility and advanced search capabilities to meet Market America’s needs. Market America sought to offer visitors to its website the ability to search for millions of products available for purchase on marketamerica.com, including products from various partner and affiliate on-line stores. Google’s solution was to be based upon the Google Search Appliance (GSA), a device that Google and LTech asserted would enable searches of 30 million products within three months of implementation and 45 million products within six months, all with sub-second response times.
Market America entered into a Services Agreement with LTech on Feb 1, 2008 and a License Agreement with Google on Feb, 4, 2008. In April of 2008 a GSA was installed at Market America. Initial load testing of the system by LTech showed response times in the 8 to 15 second range, with the system crashing at 15 queries per second. Thereafter, in August of 2008, an interim search platform capable of searching only 2 million products went live in August.
Throughout 2008, Market America invested considerable resources on developing the search capabilities it offered visitors to its site, as such capabilities are crucial to the company’s continued growth. Google and LTech continued to promise they could fulfill Market America’s search needs. More than 11 months after the agreements were signed; Market America informed Google and LTech in January of 2009 that it would not proceed with the implementation of a GSA-based enterprise search capacity because it was clear there was no acceptable long term solution imminent. “Despite the fact that Market America has now reached its goal of successfully implementing state of the art search technology on marketamerica.com through another partner, we felt this action was necessary to protect our business interests, those of our 180,000 Customer Managers, and the shopping experience of our customers,” said Marc Ashley, Chief Operating Officer of Market America.
Market America is asking that all contracts entered by the parties be rescinded and that compensatory damages be awarded.
ABOUT MARKET AMERICA
Market America is a product brokerage and Internet marketing company that specializes in One-One-Marketing. With more than six million customers and 180,000 Customer Managers worldwide, the company has generated over $3 billion in accumulated retail sales. Headquartered in Greensboro, NC – the company was founded in 1992 by president and CEO James Ridinger and employs over 500 people globally with international operations in the United States, Canada, Taiwan, Hong Kong and Australia. Through its revolutionary One-to-One Marketing concept, Market America combines the Internet with the power of people – creating the ultimate online shopping destination. More information is available at www.marketamerica.com.