Google Ordered to Pay $425 Million in Privacy Class Action

Alphabet Inc. (Google) has been ordered to pay $425 million after a federal jury ruled the company violated user privacy by collecting data despite account tracking settings being switched off. The class action covers 98 million users and 174 million devices. Google denied wrongdoing, stating the data collected was nonpersonal, pseudonymous, and stored securely.

A federal jury in San Francisco has ordered Alphabet Inc.'s Google to pay $425 million in a privacy class action lawsuit. The case revolves around allegations that Google continued to collect user data even after users had switched off the Web & App Activity setting in their Google accounts. The verdict comes after an eight-year period during which Google was accused of accessing users' mobile devices to collect, save, and use their data [1].

The class action lawsuit, filed in July 2020, claimed that Google's practices violated privacy assurances linked to its Web & App Activity setting. The plaintiffs sought more than $31 billion in damages, but the jury awarded significantly less. Google was found liable on two of the three claims of privacy violations but was not found to have acted with malice, thereby avoiding punitive damages [1].

Google's data collection practices were reportedly facilitated through relationships with apps such as Uber, Venmo, and Meta's Instagram, which rely on Google's analytics services. The company defended its practices, stating that the collected data was "nonpersonal, pseudonymous, and stored in segregated, secured, and encrypted locations" [1].

The verdict adds to Google's growing list of privacy battles. In a separate case, Google was found to have violated the privacy rights of nearly 100 million users who asked that their account data not be tracked. The company was ordered to pay $425.7 million in compensatory damages for these violations [2].

The case highlights the ongoing scrutiny of tech companies' handling of user data and the importance of transparency in privacy policies. Google has consistently denied any wrongdoing, but the verdict underscores the need for companies to adhere to privacy regulations and respect user choices [1].

References:
[1] https://www.reuters.com/sustainability/boards-policy-regulation/google-must-pay-425-million-class-action-over-privacy-jury-rules-2025-09-03/
[2] https://news.bloomberglaw.com/litigation/google-violated-privacy-of-nearly-100-million-users-jury-finds