In a landmark decision that underscores the growing scrutiny of Big Tech’s data practices, Texas Attorney General Ken Paxton has secured a historic $1.375 billion settlement with Google. This agreement addresses allegations that the tech giant unlawfully collected and utilized Texans’ personal data, including geolocation, incognito browsing activities, and biometric identifiers such as voiceprints and facial geometry.
The roots of this settlement trace back to 2022 when Attorney General Paxton filed two lawsuits against Google. The suits alleged that Google violated Texas consumer protection laws by engaging in deceptive practices related to data collection through its services, including Incognito mode, Location History, and biometric data gathering.
Key Allegations
- Incognito Mode Misrepresentation: Despite users activating Incognito mode for private browsing, Google was accused of continuing to track and collect user data during these sessions.
- Location Tracking: Even when users disabled Location History, Google allegedly continued to collect location data through other settings and applications, misleading users about the extent of their privacy controls.
- Biometric Data Collection: Google was accused of collecting biometric data, including voiceprints and facial geometry, without obtaining proper consent from users, thereby violating Texas’s biometric privacy laws.
Settlement Details
The $1.375 billion settlement is the largest ever secured by a single state against Google for data privacy violations, surpassing previous multistate settlements. Notably, Google did not admit to any wrongdoing as part of the agreement. The settlement does not mandate changes to Google’s current products but serves as a significant financial penalty for past practices.
Attorney General Paxton’s Stance
Attorney General Paxton emphasized the importance of holding Big Tech accountable, stating, “In Texas, Big Tech is not above the law. For years, Google secretly tracked people’s movements, private searches, and even their voiceprints and facial geometry through their products and services. I fought back and won.”
Broader Implications
This settlement reflects a broader trend of increased regulatory scrutiny on technology companies regarding data privacy. In a similar vein, Texas secured a $1.4 billion settlement with Meta (formerly Facebook) in 2024 over allegations of unauthorized collection and use of facial recognition data.
10 Advisories to Mitigate Future Data Privacy Risks
- Enhance Transparency: Companies should provide clear, accessible information about data collection practices and obtain explicit user consent.
- Regular Audits: Conduct periodic audits to ensure compliance with data privacy laws and internal policies.
- Data Minimization: Collect only the data necessary for service provision to reduce exposure and potential misuse.
- User Control: Empower users with robust privacy settings and the ability to manage their data preferences easily.
- Employee Training: Educate employees about data privacy regulations and ethical handling of user information.
- Third-Party Management: Ensure that third-party partners adhere to the same data privacy standards and practices.
- Incident Response Plan: Develop and regularly update a response plan for potential data breaches or privacy violations.
- Privacy by Design: Integrate privacy considerations into the development process of new products and services.
- Stay Informed: Keep abreast of evolving data privacy laws and adjust practices accordingly.
- Engage with Regulators: Maintain open communication with regulatory bodies to ensure compliance and address concerns proactively.
Conclusion
The $1.375 billion settlement between Texas and Google marks a significant milestone in the enforcement of data privacy rights. It serves as a potent reminder to technology companies of the legal and financial repercussions of violating consumer privacy. As regulatory landscapes evolve, it is imperative for organizations to prioritize transparent, ethical data practices to maintain user trust and comply with legal standards.
