What can I recover from a marketing agency that didn't deliver?

You can recover all fees paid for undelivered services, costs to hire a replacement agency, lost revenue if provable with reasonable certainty, and 10% prejudgment interest. If the agency made false promises about results, you may also have fraud claims.

My SEO agency promised first-page rankings but didn't deliver. Is that breach of contract?

It depends on the contract language. Guarantees of specific rankings may be breach of contract if not achieved. However, many SEO contracts only promise 'best efforts.' Review your agreement carefully. If they promised specific deliverables (reports, content, backlinks) and didn't provide them, that's clearer breach.

The marketing agency disappeared with my money. Is that fraud?

Taking money with no intent to perform is fraud under California law. Evidence of fraud includes: immediate non-responsiveness after payment, pattern of similar complaints, false credentials or references, and no work performed whatsoever. Fraud allows punitive damages and potentially criminal prosecution.

What's the statute of limitations for marketing agency disputes?

Written contracts: 4 years (CCP 337). Oral agreements: 2 years (CCP 339). Fraud: 3 years from discovery (CCP 338(d)). UCL claims: 4 years (B&P 17208). The clock typically starts when the agency breached or when you discovered the breach.

California Marketing Agency Breach Demand Letter | SEO, PPC, Social Media Non-Delivery

📈 Overview: Marketing Agency Breach Claims

Marketing agency disputes are among the most common B2B service conflicts. Whether it's an SEO agency that promised rankings but delivered nothing, a PPC manager who mismanaged your ad spend, or a social media agency that ghosted after payment—California law provides strong remedies.

Common Breach Scenarios

🔎 SEO Non-Delivery

Promised optimization, content, and backlinks but delivered nothing tangible

💰 PPC Mismanagement

Wasted ad budget, failed to optimize campaigns, or inflated management fees

📱 Social Media Ghosting

Took payment for social media management then disappeared or stopped posting

🎨 Branding Non-Delivery

Paid for logo, website, or brand assets that were never delivered

👍 What You Can Recover

Direct damages: All fees paid for undelivered services
Wasted ad spend: If agency mismanaged your advertising budget
Cover costs: Additional cost to hire replacement agency
Lost revenue: If provable with reasonable certainty
Prejudgment interest: 10% per year (Civil Code 3289)
Punitive damages: If fraud is proven

⚠ Warning: "Results Not Guaranteed" Clauses

Many marketing contracts disclaim specific results. However:

Disclaimers don't excuse non-delivery of contracted services
Fraudulent inducement voids contract defenses
If they promised specific deliverables (reports, content, posts), those are owed regardless of "results"

💻 Marketing Service Types Covered

This guide applies to disputes with any marketing service provider. Below are common scenarios and what you should have received.

Service Type	Typical Deliverables	Common Breaches
SEO Services	Technical audits, on-page optimization, content creation, backlink reports, ranking reports	No reports, no content, no visible work done
PPC / Paid Ads	Campaign setup, ad creative, bid management, performance reports, optimization	Poor targeting, wasted budget, inflated fees, no reporting
Social Media	Content calendar, posts, engagement, analytics reports, growth metrics	Stopped posting, poor quality content, no engagement
Content Marketing	Blog posts, articles, whitepapers, email sequences, landing pages	No content delivered, plagiarized content, AI slop
Email Marketing	Email templates, automation setup, campaign management, analytics	No campaigns sent, poor deliverability, list damage
Full-Service Agency	Strategy documents, multi-channel execution, regular reporting, account management	No strategy, abandoned account, no communication

💡 Documenting "Invisible" Work

Marketing agencies often claim they did "behind the scenes" work. To counter this:

Request Google Analytics access to verify traffic changes
Ask for Google Search Console data showing optimization
Demand ad platform screenshots showing campaign activity
Check for actual backlinks using tools like Ahrefs or Moz

⚖ Legal Basis

California law provides multiple avenues for recovering losses from marketing agency breach.

Key California Statutes

📚

California Civil Code Section 3300

Contract damages include the amount that will compensate for all detriment proximately caused by the breach. For marketing services not delivered, this includes all payments made plus consequential losses.

📚

California Business & Professions Code Section 17200

The Unfair Competition Law prohibits unlawful, unfair, or fraudulent business practices. Taking payment for marketing services without delivering constitutes an unfair business practice, allowing restitution.

📚

California Civil Code Section 1709-1710

Fraud and deceit statutes. If the marketing agency made false promises about their capabilities or results they knew they couldn't deliver, fraud claims may apply, allowing punitive damages.

📚

California Civil Code Section 3289

Provides 10% per annum prejudgment interest on contract damages. This significantly increases your recovery if the agency delays payment.

Key Cases

📖 Lazar v. Superior Court (1996) 12 Cal.4th 631

California Supreme Court held that fraudulent inducement can be established through promises made without intent to perform. If a marketing agency promised services they never intended to deliver, this case supports fraud claims.

📖 Engalla v. Permanente Medical Group (1997) 15 Cal.4th 951

Established that fraud can be proven through the totality of circumstances, including a pattern of behavior. Useful when the agency has a history of similar complaints.

🖩 Marketing Agency Breach Damages Calculator

Use this interactive calculator to estimate potential damages in your case. Enter your information below to get an estimate of recoverable damages.

Direct Financial Loss ($) Actual money lost or spent

Consequential Damages ($) Additional losses caused by the issue

Emotional Distress Level

Statutory Penalty Type

📈 Estimated Damages Breakdown

Direct Damages $0

Consequential Damages $0

Emotional Distress (Est.) $0

Statutory Penalties (Est.) $0

TOTAL ESTIMATED DAMAGES $0

Disclaimer: This calculator provides rough estimates for educational purposes only and does not constitute legal advice. Actual damages vary significantly based on specific facts, evidence strength, and many other factors. Consult with a qualified California attorney for an accurate case evaluation.

🔍 Evidence Checklist

Gather these materials before sending your demand letter.

📄 Contract & Agreement

✓ Signed service agreement or proposal
✓ Statement of work / scope document
✓ Promised deliverables list
✓ Timeline and deadlines

💰 Payment Records

✓ All invoices received
✓ Payment confirmations (bank, CC, PayPal)
✓ Ad spend receipts (separate from fees)
✓ Any refunds or credits received

📈 Performance Evidence

✓ Google Analytics screenshots (before/during)
✓ Ad platform data showing (non)activity
✓ Social media post history
✓ Any reports or deliverables received

📩 Communications

✓ Emails requesting updates/deliverables
✓ Agency's promises and excuses
✓ Evidence of non-response
✓ Sales pitch / initial promises

💰 Damages Calculation

Calculate your total claim using these categories.

Damage Category	Description	Evidence Needed
Management Fees Paid	Monthly retainer, project fees, setup fees	Invoices, payment records
Wasted Ad Spend	PPC budget mismanaged or stolen	Ad platform reports, bank statements
Cover Costs	Cost to hire replacement (excess over original)	New agency contract, invoices
Lost Revenue	Provable business losses from delay/failure	Historical revenue data, projections
Prejudgment Interest	10% per year from breach date	Date of breach, demand amount

🔢 Example Calculation

Hired SEO agency at $3,000/month for 6 months = $18,000 paid. Agency delivered nothing verifiable.

Management fees: $18,000
Replacement agency (additional cost): $2,000
Prejudgment interest (1 year at 10%): $1,800
Total claim: $21,800

📝 Sample Demand Letter Language

Opening Paragraph

Sample: Opening

I am writing to demand a refund of $[AMOUNT] paid to your agency for marketing services that were never delivered. On [DATE], I engaged [AGENCY NAME] to provide [SEO/PPC/SOCIAL MEDIA/OTHER] services pursuant to our agreement dated [DATE]. Despite paying the agreed-upon fees totaling $[AMOUNT], your agency has failed to deliver the contracted services.

Breach Description (SEO)

Sample: SEO Breach

Under our agreement, you were obligated to provide the following deliverables: [LIST: monthly reports, content creation, backlink building, technical optimization, etc.]. Over the [X MONTH] engagement period:

• No monthly reports were provided despite repeated requests
• No content was created or published to our website
• No evidence of any backlink building activity
• Google Analytics shows no change in organic traffic
• Google Search Console shows no optimization activity

In short, you collected $[AMOUNT] in fees while performing no measurable work. This constitutes material breach of our agreement under California contract law.

Breach Description (PPC)

Sample: PPC Breach

You were contracted to manage our Google Ads / Facebook Ads campaigns with a monthly management fee of $[AMOUNT] plus ad spend of $[AMOUNT]. Review of the ad account shows:

• [X%] of ad spend was wasted on irrelevant keywords/audiences
• No optimization was performed after initial campaign setup
• Negative keywords were never implemented despite clear irrelevant traffic
• Promised reporting was never provided
• Our requests for account access were ignored

The total wasted ad spend plus management fees amounts to $[AMOUNT].

Demand and Deadline

Sample: Demand

I demand full refund of $[AMOUNT] within fourteen (14) calendar days of this letter, by [DATE]. Payment should be made by [PAYMENT METHOD].

If I do not receive payment by the deadline, I will pursue all available legal remedies without further notice, including:

• Filing a civil complaint for breach of contract and fraud
• Filing a complaint with the California Attorney General under Business & Professions Code 17200
• Posting detailed reviews on Google, BBB, and industry forums documenting your non-performance
• Seeking all available damages including attorney's fees and prejudgment interest

🚨 Fraud Indicators

If these indicators are present, you may have fraud claims in addition to breach of contract.

🚫 Immediate Ghosting

Agency became non-responsive immediately after receiving payment

👤 Fake Credentials

Agency misrepresented experience, certifications, or client list

📈 Fabricated Reports

Reports provided contained false or manipulated data

🎯 Pattern of Complaints

Similar complaints from other clients (check BBB, reviews, forums)

💰 Excessive Upfront Payment

Demanded large payment upfront, then did minimal work

🔒 Account Access Denied

Refused to give you access to ad accounts or analytics

💡 Fraud Changes the Game

If fraud is established, you may recover:

Punitive damages (potentially multiple times actual damages)
Attorney's fees (even without contract provision)
Extended statute of limitations (3 years from discovery)

Document all fraud indicators carefully for your demand letter and potential litigation.

👥 When to Hire a Business Litigation Attorney

Marketing agency disputes often involve wasted advertising spend, access to accounts, and ongoing business damage. Here's when you might handle matters yourself versus when professional help makes sense.

✅ May Handle Yourself When:

Dispute involves under $5,000 in fees or ad spend
Contract terms are clear and agency acknowledges breach
You have full access to all accounts and data
Agency is responsive and negotiating resolution
Simple service dispute without fraud indicators

⚠️ Hire an Attorney When:

Total losses exceed $15,000 in fees and wasted spend
Agency has locked you out of accounts or refuses data access
Fraud indicators are present (fake reports, inflated metrics)
Agency is holding IP, content, or domain names hostage
Contract includes arbitration or venue selection clauses
Multiple clients may be affected (potential class action)
Agency has disappeared or is judgment-proof
The agency has retained legal counsel

📊 Not Sure If You Need an Attorney?

Marketing agency disputes can involve significant financial losses and ongoing business harm. Take our free assessment to determine whether your situation warrants professional legal representation.

Take Free Assessment →

🚀 Next Steps

Secure your accounts – Change passwords, revoke agency access to ad platforms, analytics, social media
Document everything – Screenshot ad accounts, download reports, preserve all communications
Calculate total damages – Include fees, wasted ad spend, cover costs, lost revenue
Send demand via certified mail – Keep proof of delivery
Set 14-day deadline – Reasonable time for response
File chargeback – If paid by credit card, dispute charges with your bank
Post reviews – After deadline passes, document your experience publicly
Consider small claims – Up to $12,500 without an attorney

💳 Credit Card Chargeback

If you paid the agency by credit card, you may be able to dispute charges under the Fair Credit Billing Act. Most card issuers allow disputes within 60-120 days of the charge. Document the breach thoroughly when filing.