Google has agreed to pay a substantial settlement of $155 million to address allegations brought by the state of California and private plaintiffs. The claims revolve around accusations that Google deceived consumers by misleading them regarding the extent of location tracking and the unauthorized use of their personal data.
Both settlements aim to resolve the assertion that Google, a subsidiary of Alphabet Inc., misrepresented its consumers by giving them the false impression of retaining control over the collection and utilization of their private information.
Google had faced allegations of creating user profiles and directing targeted advertising, even if individuals had disabled their “Location History” feature. Additionally, the company was accused of misleading users about their capacity to block unwanted advertisements.
California’s Attorney General, Rob Bonta, stated, “Google was telling its users one thing—that it would no longer track their location once they opted out—but doing the opposite and continuing to track its users’ movements for its own commercial gain. That’s unacceptable.”
Under the terms of the California settlement, Google will pay $93 million and will also be required to provide more comprehensive information regarding how it tracks user locations and utilizes collected data.
In the case of the $62 million settlement with private plaintiffs, the funds, after legal fees are deducted, will be allocated to nonprofit organizations endorsed by the court that focus on internet privacy issues. This approach, known as “cy pres,” was deemed pragmatic, as distributing the funds to approximately 247.7 million U.S. adults with mobile devices would be impractical.
Critics of this settlement approach argue that it provides minimal benefits to class members. Google has not admitted to any wrongdoing in these settlements, and court approval is required for both agreements.
It is worth noting that Google had previously settled similar allegations with 40 U.S. states, agreeing to a payment of $391.5 million in November. The company has also settled with Arizona and Washington, amounting to $124.9 million.
Google, headquartered in Mountain View, California, recorded advertising revenue of $110.9 billion in the first half of 2023, constituting 81% of its overall revenue of $137.7 billion.
By Reuters
