On Tuesday, the Attorney General’s Office announced it had reached a $85 million settlement with Google for “deceptively obtaining users’ location data to make billions of dollars in profit.” According to the settlement, Google does not admit to any wrongdoing.
The $85 million settlement directs the bulk of the money to the general fund.
The Attorney General’s Office has set aside $5 million for attorney general education programs.
The Attorney General’s Office (AGO) began an investigation of Google after a 2018 news article revealed that the company was misleading and deceiving consumers about the collection and use of their personal location data by tracking smartphones even when consumers disabled the “Location History” setting.
The AGO sued Google in May 2020, making Arizona the first state in the country to hold the tech giant accountable in state court for deceiving consumers through so-called “dark patterns” that were built into its software, including apps and Android phones. Dark patterns are coercive design tactics used to manipulate users’ behavior.
In the lawsuit, the AGO alleged that Google engaged in deceptive and unfair practices toward users by tracking their location data even when the company was told to stop. When users turned off their Location History in settings, Google continued to surreptitiously collect their location through other settings such as Web & App Activity and the company used that information to sell ads. The software is pre-programmed into Android phones purchased by consumers.
According to the AGO, Google derives the vast majority of its profit by selling advertisements that are displayed to users of its products and services. In 2019, more than 80% of Google’s revenues—$135 billion of its $161 billion total—were generated through advertising. The company collects detailed information about its users, including their physical locations, to target them in specific geographic locations. This is regularly done without the users’ knowledge or consent.
READ MORE ABOUT THE CASE:
Consumer Fraud Case Against Google Prompts Dozens Of Redacted, Sealed Court Filings