Google has agreed to pay a settlement of $155 million to settle claims made by the state of California and private plaintiffs that the search engine company misled consumers about how it tracks their locations and used their data without consent. These settlements aim to resolve the accusations that Google deceived users into thinking they had control over the collection and usage of their personal data.
The settlement with California requires Google to pay $93 million and disclose more information about how it tracks people’s whereabouts and utilizes the data it collects. California Attorney General Rob Bonta criticized Google for misleading its users by stating that their location would no longer be tracked once they opted out. However, Google continued to track their movements for its own commercial gain, which was deemed unacceptable.
In addition to the settlement with California, Google will pay $62 million to private plaintiffs. After deducting legal fees, the remaining amount will be donated to court-approved nonprofit organizations that focus on addressing internet privacy concerns. This decision was made considering the impracticality of distributing the money to approximately 247.7 million US adults with mobile devices. However, critics argue that this type of settlement, known as “cy pres,” provides little benefit to class members.
Google has denied any liability in this case. It previously reached a settlement agreement of $391.5 million with 40 US states in November, addressing similar allegations. Furthermore, the company resolved allegations made by Arizona and Washington for $124.9 million. According to a Google spokesperson, the recent settlements are related to outdated product policies that have been changed years ago.
The $155 million settlement comes at a significant financial cost to Google, but it pales in comparison to the company’s advertising revenue. In the first half of 2023 alone, Google generated a staggering $110.9 billion in advertising revenue, accounting for 81 percent of its total revenue of $137.7 billion. Although the settlement may not severely impact Google’s financial standing, it does serve as a reminder of the importance of user trust and data privacy.
Google’s agreement to pay a $155 million settlement over the allegations of misleading location tracking and unauthorized data usage highlights the company’s responsibility to respect privacy expectations. While the California settlement requires financial compensation and increased transparency, the private plaintiffs settlement directs a portion of the funds towards nonprofit organizations. These settlements aim to address concerns surrounding Google’s handling of user data and serve as a reminder that companies must prioritize data privacy and consumer trust.
Leave a Reply