Google Agrees to $1.38 Billion Settlement Addressing Privacy Violations

The state of Texas has finalized a significant financial settlement with Google, amounting to $1.375 billion, to resolve two long-standing lawsuits stemming from allegations of deceptive data practices.

The initial lawsuit, filed by the Office of Texas Attorney General Ken Paxton in January 2022, accused Google of unlawfully collecting users’ geolocation data. The complaint asserted that the company persisted in tracking user locations even after individuals believed they had disabled such features, utilizing this data to deliver targeted advertisements.

In May 2022, the state refined its case to include further allegations regarding Google’s transparency about data collection during private browsing sessions, commonly referred to as Incognito Mode. The lawsuit argued that Google’s warnings on the Incognito Mode splash page—indicating that internet service providers, employers, educational institutions, and websites may still gather data—were inadequate. It contended that these disclosures did not sufficiently inform users about the extent and type of data collection occurring during these supposedly private browsing sessions, thus eroding the expectation of privacy that Google had established.

Later in October 2022, Texas filed an additional lawsuit accusing Google of gathering biometric information, such as voice prints and facial geometry, through its various services, including Google Photos and Google Assistant, as well as devices like the Nest Hub Max.

While a coalition of 40 states previously secured a $391.5 million settlement with Google regarding location tracking, several states pursued independent litigation. Arizona, for instance, settled for $85 million. In a recent press release, Paxton emphasized the magnitude of Texas’s recovery, contrasting it with the multi-state settlement by noting that Texas’s agreement was nearly a billion dollars greater.

This latest legal triumph is not Paxton’s first success against Google. In 2023, Texas participated in a nationwide settlement amounting to $700 million with the company concerning anti-competitive practices related to its Play Store. Additionally, Texas secured an $8 million settlement over allegations of deceptive advertising, where Google had reportedly paid influencers to promote a Pixel phone model before its launch and without prior experience with the device.

In a notable legal turn, Texas achieved a victory in August by winning a four-year legal battle against Google concerning monopolistic practices in search engine operations.

In terms of financial ramifications, this settlement with Google marks Paxton’s second-largest victory in a confrontation with Big Tech, narrowly trailing behind a $1.4 billion settlement with Meta, the parent company of Facebook and Instagram, over the mishandling of biometric data, particularly concerning facial recognition features in its Tag Suggestions.

The lawsuits addressing biometric data misuse against both Meta and Google were brought under the Texas Capture or Use of Biometric Data Act of 2009. The allegations regarding geolocation tracking and private browsing practices were addressed under the Texas Deceptive Trade Practices Act. On a broader scale, there remains a lack of a cohesive federal consumer data privacy law, despite ongoing attempts to establish such legislation.

In response to these developments, Attorney General Paxton has assembled a specialized legal team aimed at addressing issues of consumer data privacy. This team, operating within the consumer division of his office, is tasked with pursuing accountability from companies that mishandle consumer information. Paxton reiterated his commitment to strengthening privacy rights amidst growing concerns regarding the exploitation of consumer data.