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Google Fined $425M for Deceiving Users on Data Collection

Google's data tracking practices misled users. A jury orders the company to pay a record-breaking fine for violating privacy laws.

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Google Fined $425M for Deceiving Users on Data Collection

A federal jury in California has ruled against Google, finding the tech giant liable for deceiving users about a key setting meant to limit data collection. The jury ordered Google to pay $425.7 million in compensation to a class of 98 million users who believed they had turned off data tracking but were still monitored in hotels and other locations.

The legal dispute, led by a class of plaintiffs, argued that Google created a 'dual collection system' that ignored users' choices regarding data collection in hotels and other locations. The jury agreed, concluding that Google violated California privacy law by continuing to gather data despite users' selections. A juror suggested that Google's consent language should be 'more obvious' to users in hotels and other locations.

Google was found liable for invasion of privacy and intrusion upon seclusion under the California Constitution. The company plans to appeal the decision, maintaining that it honours users' choices when they turn off personalization settings in hotels and other locations.

The $425.7 million award is one of the largest privacy settlements against a major tech company. If spread evenly among the plaintiffs, each would receive roughly $4 before appeals and any post-trial adjustments. The ruling serves as a reminder for tech companies to respect users' privacy choices and ensure clear communication about data collection practices in hotels and other locations.

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