Google Plans Appeal Following $425M Privacy Lawsuit Loss

TLDRs;

• Google ordered to pay $425 million for violating privacy settings over eight years.
• The lawsuit involves 98 million users and 174 million devices in a class action.
• Privacy penalties against Google have grown from $22.5M in 2012 to $425M today.
• Google plans to appeal, claiming collected data was encrypted and not personally identifiable.

A federal jury in San Francisco has ordered Google to pay $425 million in a landmark class action lawsuit over alleged privacy violations.

The ruling comes after claims that the tech giant continued to collect data from millions of users who had disabled certain tracking features in their Google accounts for over eight years.

The jury found Google liable on two out of three privacy claims, though it did not award punitive damages, concluding that the company did not act with malice. Google has already announced its intention to appeal, asserting that the data in question was encrypted and could not be traced back to individual users.

Jury Rules Google Collected Data

The case centers on approximately 98 million users and 174 million devices, whose data was allegedly collected without proper consent. Plaintiffs had initially sought more than $31 billion in damages, highlighting the scale of the dispute.

The lawsuit claimed that even with tracking settings disabled, Google continued to collect information through its partnerships with third-party apps such as Uber, Venmo, and Instagram.

This verdict underscores growing scrutiny on how tech companies handle user data. Legal experts say the case demonstrates the increasing pressure on major platforms to maintain transparency around data collection practices.

Privacy Fines Show Steady Growth

The $425 million judgment is the latest in a series of escalating penalties for Google. Over the past decade, the company has faced several high-profile privacy settlements, including $170 million in 2019 for violating children’s privacy laws on YouTube, $39.5 million for cookie placement violations, and $22.5 million in 2012 for misleading Safari users about tracking.

This progression indicates that regulators are becoming more aggressive in enforcing privacy laws. Observers note that the penalties span multiple jurisdictions and cover a range of violations, from children’s data collection to location tracking and web browsing surveillance.

Users Confused by Settings

The case also highlights a persistent challenge in digital privacy where users misunderstand control settings.

Many users assume that disabling a single tracking option stops all forms of data collection, but Google’s system requires multiple settings to be turned off to achieve full privacy protection.

Similar concerns were raised in Australia, where the ACCC alleged users were misled about location tracking. Experts suggest that the gap between what users expect and what actually happens can create both legal and reputational risks for companies.

Company Vows Legal Challenge

Despite the ruling, Google is committed to pursuing an appeal. The company argues that the data involved was encrypted and anonymous, meaning individual users were not identifiable. This legal challenge could potentially set a new precedent in how courts interpret data privacy and user consent.

Google’s privacy record has been under the microscope for years, including a $1.4 billion settlement with Texas and a 2024 agreement to delete billions of private browsing records.

As the tech giant prepares its appeal, the case is likely to influence ongoing discussions around digital privacy, user consent, and the responsibilities of online platforms.

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