Google Ordered to Pay $425 Million in Major Privacy Class-Action Lawsuit
Jury finds Google collected user data despite disabled tracking settings; company announces plans to appeal.
A U.S. federal jury on September 3 ordered Google to pay $425 million in damages after finding the company illegally collected user data from third-party apps even when users had disabled the Web & App Activity tracking feature. The verdict stems from a class-action lawsuit filed in 2020 that accused Google of violating privacy rights by continuing to gather location and app usage data without proper consent.
The lawsuit, initiated in July 2020, accused Google of gathering and storing user data from popular apps, including Uber, Venmo, and Instagram, between 2012 and 2020, even after users had opted out of personalized tracking. Plaintiffs contended that Google misled users about the effectiveness of its privacy controls and ignored their consent.
The jury held Google responsible for two of three claims, confirming violations of user privacy laws. However, it found no evidence of malice or intentional fraud, so no punitive damages were awarded.
The class-action lawsuit represents approximately 98 million users and covers 174 million devices. Although plaintiffs originally sought over $31 billion in damages, the jury’s $425 million award still ranks among the largest privacy-related settlements in U.S. history.
Google has denied any wrongdoing and intends to appeal the decision. Company spokesperson Jose Castaneda stated:
“When users disable personalization, we respect their choice. We disagree with the verdict and intend to appeal it. The decision reflects a misunderstanding of how our privacy features operate.”
This ruling adds to Google's increasing legal troubles surrounding user data privacy. In 2024, the company settled a similar case with Texas for $1.4 billion and agreed to delete data collected during Incognito browsing sessions in its Chrome browser.
Experts say the verdict highlights on the mounting pressure on tech firms to uphold digital consent, transparency, and user control as concerns over data surveillance intensify.
David Boies, attorney representing the plaintiffs, described the verdict as a significant victory for consumer privacy:
“This case sends a clear message: user privacy settings must be respected, and consent cannot be bypassed.”
While Google’s appeal looms, this decision could set a powerful precedent for future privacy cases. It may spur users and regulators alike to demand greater accountability from digital platforms regarding data collection and usage.