Earlier quoted context omitted.
If a user of my site asks me how the ads work and I say that I get paid if users click them ... Is that click fraud?
No, but its getting very close to the gray area/fine line. If you are encouraging the user to click your link for some reason other than him being interested in the product - then it is click fraud. Example of click fraud: I get paid when users click my ads. The more money this website makes the less time I have to spend working hourly at Starbucks. Less time at Starbucks means more time working on my website, writin…
From Merriam-Webster:
a : deceit, trickery; specifically : intentional perversion of truth in order to induce another to part with something of value or to surrender a legal right
b : an act of deceiving or misrepresenting : trick
Where was he deceiving or misrepresenting the situation? The fact is that there is no tractable way for Google to separate people who are interested in supporting an ad-driven business from those who really are creating false ad traffic for financial gain.