Mountain View: Google has agreed to a $155 million settlement to resolve claims made by California and private plaintiffs who accused the company of misleading consumers regarding its tracking of their locations and unauthorised use of their data.
The settlement addresses allegations that Google misled users by making them believe they had control over how the company collected and utilised their personal data. The company was accused of continuing to track users' locations for commercial purposes even after they opted out through the "Location History" setting.
Under the terms of the settlement, Google will pay $93 million to California and must provide more transparency regarding its location tracking practices and data usage. The remaining $62 million will go to nonprofit organisations focused on internet privacy, minus legal fees, and was approved by a court for distribution, reported Reuters.
This type of settlement, known as "cy pres," has faced criticism for offering limited benefits to class members, as it is often deemed infeasible to distribute money to all affected individuals. Google has previously reached settlements related to similar allegations with various states, including a $391.5 million settlement with 40 U.S. states in November. Google has also paid settlements to Arizona and Washington, amounting to $124.9 million.
Google has denied any liability in these settlements, and the court's approval is required for both the California and private plaintiffs' settlements.
The company generated a substantial portion of its revenue, approximately $110.9 billion, from advertising in the first half of 2023, accounting for 81% of its total revenue of $137.7 billion.
Critics argue that this settlement highlights concerns about internet privacy and the power of tech giants in handling user data. Google maintained that the issues addressed in the settlement relate to outdated product policies that have since been updated.