Google has reached a settlement of nearly $392 million with 40 states following allegations that the company tracked individuals through their devices despite location tracking being turned off. State prosecutors announced the settlement on Monday, accusing Google of violating consumer protection laws by misleading users about its secret recording of their movements. The harvested data was then used to sell advertisements, which constitutes a significant portion of Google's revenue.
Oregon Attorney General Ellen Rosenblum, leading the investigation alongside Nebraska, criticized Google for prioritizing profit over user privacy and described the company's practices as crafty and deceptive.
This settlement represents the largest-ever multistate privacy settlement and signifies the importance of location data in Google's advertising business. State investigators emphasized that this data, often used by law enforcement in criminal investigations, is highly sensitive and valuable, enabling targeted advertising based on users' proximity.
As part of the agreement, Google has committed to making its location-tracking practices more transparent. This includes providing users with clearer information when they toggle location tracking on or off and offering a comprehensive breakdown of the location data regularly collected on a dedicated webpage accessible to consumers.
A Google spokesperson responded to the settlement, stating that the practices highlighted by prosecutors are outdated and have already been revised. They highlighted the improvements made by Google in recent years and emphasized that the company has settled the investigation.
Google also announced in a blog post following the settlement that it now offers an "Incognito mode" on Google Maps, preventing location data from being saved to users' accounts.
While state prosecutors have taken action on online privacy, the absence of comprehensive federal legislation has prompted calls for nationwide data protections from lawmakers in Washington. Despite bipartisan support for a national privacy law, Congress has failed to pass one, lagging behind Europe's data protection regulations.
The settlement serves as a reminder of the need for comprehensive privacy laws, with Oregon AG Rosenblum urging lawmakers to act. Several states, including California, Colorado, Connecticut, Utah, and Virginia, have already implemented their own consumer data privacy laws in the absence of federal legislation.
The investigation into Google's location tracking practices was initiated following an Associated Press report in 2018 that revealed Google services on Android devices, and iPhones continued saving users' location data even when location tracking was disabled in privacy settings.
Last month, Google settled a separate lawsuit with Arizona authorities for $85 million, addressing similar allegations of deceptive location tracking on phones to provide advertisers with consumer data.
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