Google Must Pay $425M in Privacy Class-Action Lawsuit

Post by : Monika

Google, one of the world’s biggest technology companies, has been ordered to pay $425 million after a U.S. federal jury ruled against it in a major privacy lawsuit. The case, which started in 2020, argued that Google continued to collect user data even when people had turned off a feature meant to stop tracking.

The decision is one of the largest privacy-related rulings against the company in recent years. It affects about 98 million people and 174 million devices across the United States.

For many users, the case highlights a simple but serious problem: when someone turns off tracking on their phone or computer, they expect that tracking to stop. But according to the lawsuit, Google kept gathering information behind the scenes.

What the Case Was About

The case centered on a setting inside Google accounts called “Web & App Activity.” This setting controls whether Google saves information about searches, app activity, and browsing history.

• When turned on, Google tracks what people do on different apps and websites. This information is used to personalize ads and other services.
• When turned off, Google is supposed to stop collecting such data.
• But the lawsuit claimed that even with the setting off, Google still gathered data through popular apps like Uber, Venmo, and Instagram between 2012 and 2020.
• In simple terms, users thought they had stopped Google from watching their online actions, but Google allegedly kept watching anyway.

The Jury’s Decision

• After hearing months of arguments and reviewing years of evidence, the jury made its decision:
• Google was guilty on two out of three privacy claims.
• The jury agreed Google did not act with “malice”, meaning it didn’t purposely set out to harm users.
• Because of this, the jury did not award punitive damages (extra punishment money).
• Instead, the final amount set was $425 million.

This amount is much smaller than what users originally asked for. The lawsuit had demanded more than $31 billion in damages. Still, it is a strong warning to Google that privacy matters and cannot be ignored.

• How Many People Were Affected
• The lawsuit covers a huge number of users:
• 98 million people were part of the class-action suit.
• 174 million devices were affected.

That means millions of everyday users may be eligible for part of the payout. While each person will likely receive only a small share after legal fees, the case is important because it shows that courts are willing to hold big tech companies accountable.

Google’s Response

• Google quickly announced that it would appeal the decision. The company disagrees with the ruling, saying the jury misunderstood how its products work.
• A Google spokesperson explained:
• When users turn off personalization, Google respects that choice.
• The company argued that the data it collects is not personal tracking but needed for service improvements.
• In other words, Google claims that it did not break privacy promises, and it wants a higher court to review the case.

The Users’ Lawyers

On the other side, the lawyer representing the users, David Boies, said he and his team were very happy with the result. He called it a major win for ordinary people who want their privacy respected online.

Boies also noted that the verdict shows juries are willing to stand up against large companies when they cross the line.

• Other Privacy Cases Against Google
• This case is not the first time Google has faced privacy complaints:
• Texas Privacy Case (2025)
• Earlier this year, Google agreed to pay almost $1.4 billion in a settlement in Texas.
• That case also involved claims of illegal data collection.
• Incognito Browsing Case (2024)
• In April 2024, Google was ordered to delete billions of data records.
• The data was collected when people were browsing the internet in “Incognito mode”, which was supposed to be private.

European Union Fines

• Over the past decade, the EU has fined Google billions for privacy and competition violations.
• All of these show that privacy is becoming one of the biggest legal problems for tech companies.
• Why This Matters to Everyday People
• This ruling matters for several reasons:

Trust in Technology
People use Google every day—for searches, maps, email, and more. If Google does not honor privacy settings, trust can be broken.

Big Numbers, Big Impact
Nearly 100 million people were affected. That shows how even small technical decisions at a company like Google can affect millions worldwide.

Setting a Legal Example
The decision sends a message to other technology companies: if you promise privacy, you must keep that promise.

User Rights
It proves that ordinary users, when grouped together in class-action lawsuits, can challenge the biggest corporations.

The Future of Google and Privacy

Google’s appeal could change the final outcome. If a higher court rules in Google’s favor, the payment could be reduced or canceled. But if the ruling stands, it will add to the growing list of expensive privacy cases against the company.

More lawsuits could also follow, as users become more aware of how their data is collected. Other tech giants like Meta (Facebook), Amazon, and Apple also face constant pressure to be transparent about privacy.

• Governments around the world are also passing new laws to control how companies use personal data. For example:
• The European Union’s GDPR is one of the strongest privacy laws in the world.
• Several U.S. states, including California, have their own privacy acts.
• These laws are designed to give people more control over their information, and big tech companies are being forced to adapt.

What Users Can Learn

• The case also teaches important lessons to everyday users:
• Check Your Settings
• Many people do not know what data is being collected. It’s important to review privacy settings on Google and other platforms.
• Incognito Is Not Fully Private
• Even “private” browsing may not be fully safe. Companies often still gather some data.
• Lawsuits Take Time
• This case started in 2020 and only ended in 2025. Legal battles against tech companies can be long and complicated.
• Power in Numbers
• While one user cannot easily fight a big company, millions of users together can bring change.
• A Turning Point for Big Tech

The $425 million fine may not be very large compared to Google’s yearly profits, which are in the tens of billions. But the case represents something bigger: a turning point in how society deals with online privacy.

For years, tech companies collected huge amounts of data without much resistance. Now, courts, governments, and users are pushing back.

If companies like Google want to keep their strong position in the market, they will need to rebuild trust with users and be more transparent about how they handle personal data.

• The Google privacy case is not just about money. It is about trust, rights, and the growing power of technology in everyday life.
• The verdict shows that privacy settings must be respected.
• Millions of people stood together to demand fairness.
• Google, while appealing, faces a growing list of privacy challenges.

Google privacy lawsuit