The Google Class Action Lawsuit Settlement: A Comprehensive Look

Google’s class action lawsuit settlements have raised awareness of consumer rights and data privacy issues. And as these cases progress, they will likely continue to influence the tech industry’s practices and shape the regulatory landscape for years to come.

For tech behemoth Google, 2024 has already shaped up to be quite the year. The brand made multiple bombshell announcements at its Google Cloud Next 2024 event in early April, including the introduction of a chip powered by artificial intelligence (AI) that aims to take on NVIDIA, as well as several strategic investments in cloud solutions and infrastructure.

However, 2024 has also proved to be the year of the class action lawsuit. A trio of Google class action lawsuit settlements threaten to put a dent in the company’s revenue and reshape its business strategy for years to come. Here’s everything you need to know.

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The Google Play Store $700 Million Settlement

A $700 million settlement in a class action suit regarding the Google Play Store was reached in late 2023. Nevertheless, it has undeniably impacted the brand’s strategy throughout 2024.

The lawsuit arose from allegations that the brand misled consumers about the fees it charged for subscription services. Users were surprised to find that they continued to be billed even after canceling their subscriptions on the platform, claiming that Google had not disclosed that something like that would ever happen.

The plaintiffs also alleged that Google engaged in monopolistic practices, claiming that Google exerted too much control over the Android app market. The company’s dominant position in the mobile market space may have played a role in driving up prices and limiting users’ options when buying apps.

Ultimately, the suit targeted Google’s practices related to subscription renewals and the transparency of its billing process. And under the terms of its eventual settlement, Google was ordered to put $630 million into a fund for consumers and another $70 million into a state-managed fund. Consumers who spent money on subscriptions on Google Play from August 2016 to September 2023 were eligible to participate in the suit. However, the deadline to submit a claim with the settlement was May 30, 2023.

Since the settlement, Google has restructured its payment policies, allowing “choice billing,” whereby developers and app creators can offer different payment methods aside from the native Google Play processing solution.

The Chrome “Incognito” Mode Privacy Lawsuits

Google faced another controversy over its Chrome browser’s “Incognito” mode. As it turns out, the mode didn’t hide as much user activity as the search giant claimed. According to the plaintiffs’ allegations, Chrome continued to track user activity even when using the “Incognito” feature.

The lawsuit was originally filed in June 2020, accusing Google of violating several federal wiretapping laws and state privacy laws. Google allegedly tracked user activity through ads, plugins, and Google Analytics. There had to be something to these claims, seeing that Google would go on to settle with the plaintiffs.

The problem is no one ever received reimbursement for the company’s violations. The terms of the settlement only required Google to delete the private browsing data of over 136 million people . At first glance, a move like that might appear to be a positive step toward ensuring user privacy. However, Google and other major tech companies have a history of finding loopholes that exploit consumer data for financial gain.

Following the suit, some users chose to pursue individual claims, seeking compensation and clarification on Google’s data practices. These cases are now being heard in various federal and state courts.

Individuals residing in California, in particular, may have a strong chance of winning their cases thanks to the California Consumer Privacy Act of 2018 (CCPA). The state was the first of several to enact sweeping consumer privacy regulations protecting individuals’ data privacy rights.

Google’s Incognito mode scandal appears to violate several provisions of the CCPA. However, cases are still ongoing, and it’s unclear if the plaintiffs are making any headway.

The Google Cloud Contact Center AI Lawsuit

Lastly, there’s the Google Cloud Contact Center AI lawsuit, which centers around allegations that Google’s AI technology has improperly accessed and used user data. The plaintiffs claim that Google’s AI systems violate privacy rights by collecting and storing sensitive information without adequate consent or security measures.

Several companies that use Google’s Cloud Contact Center AI software have been named in the suit, including Verizon and Home Depot .

Google has since contested the allegations, though, stating that its AI-powered systems comply with all applicable laws and regulations. Furthermore, the brand claims that its data collection practices are transparent and that users consent to the use of their information through the terms of service.

Regardless, the suit’s outcome will have a significant impact on data privacy and AI technologies, potentially shaping the AI space as a whole for years to come.

Other AI-Related Scandals

Google has been a pioneer in the AI field, being locked in fierce competition with Microsoft, Open AI, and several other successful tech companies as it seeks to win the AI arms race. Unfortunately, a lot of the PR has been negative.

Outside of class action lawsuits, Google was the first company to be fined for AI training copyright violations , being ordered to pay $270 million by France’s competition watchdog for violating antitrust commitments.

Among other things, Google failed to compensate news outlets and other French entities for showing snippets of their content in search results despite previously agreeing to make several changes to its policies in response to a 2022 settlement with French regulators. After seeing that Google was not going to follow through, regulators threw the book at the company.

Google’s Legal Position and Response

Google has maintained a consistent stance across every lawsuit, emphasizing its commitment to user privacy and compliance with relevant laws. The company argues that its practices are in line with industry standards and that any issues are unintentional. Google has also highlighted its efforts to enhance transparency and improve user control over personal data.

In public statements, Google has reiterated its dedication to protecting user privacy and improving its services. By committing to make major changes to its platform and policies, Google has minimized the financial and PR impact of many of the scandals it has been involved in.

Financial and Operational Implications

In the aftermath of the Google Play settlement, Google laid off hundreds of its employees . However, these layoffs are simply correlated to the Google Play settlement not necessarily directly caused by it. Some experts suggest that the layoffs are part of a larger restructuring designed to cut costs amid economic pressures.

In any case, the settlements and ongoing lawsuits are expected to have significant implications for Google, as the brand is bound to incur substantial legal fees and compensation payouts. Furthermore, each case has the potential to shape the company’s approach to AI research and development, data collection, and consumer information monetization. All of these challenges also impact Google’s parent company, Alphabet Inc., and its subsidiaries.

On the other hand, Google has developed a winning formula for generating billions in profits and cornering the search engine market. It continually finds creative workarounds for the challenges it faces and will likely implement new strategies for monetizing consumer data.

Consumer Rights and Class Action Participation

Unfortunately, the claim window for the Google Play lawsuit has already closed. Additionally, as mentioned above, the Incognito case, while settled, did not include a monetary compensation component in the terms of the agreement.

However, you may still be able to file an individual grievance against Google if you use Incognito mode. Consult with a consumer rights attorney in your state to determine whether filing a claim is a logical next step.

The Google Cloud Contact Center AI case, on the other hand, is still in its very early stages. If you are a Verizon or Home Depot customer, you may be able to join the lawsuit at a later date. Keep a close eye on the case to see if it gets dismissed or progresses through the legal system.

If Google or one of the other companies agree to a settlement, you will need to determine your eligibility and file a request for compensation within the settlement window. These types of cases can go on for months, even years, so you must be diligent in keeping up with the latest developments.

The Role of Courts and Regulators

Typically, class action lawsuits are filed in a federal district court, the general trial courts of America’s federal court system. Usually, plaintiffs will file their claim with the court closest to their place of residence.

Google, however, hasn’t just faced court hearings and trials. It has also come under scrutiny from the Federal Trade Commission (FTC) and the Department of Justice (DOJ). Their investigations and enforcement actions are aimed at ensuring compliance with antitrust laws and protecting consumer interests.

Other Tech Industry Class Action Lawsuits

The company behind the world’s most popular search engine isn’t the only tech giant to face class action suits in federal court. Here’s a look at four other brands that are facing scrutiny from various class members:

Roblox

The popular gaming site Roblox has been accused of doubling as an illegal gambling ring that preys on its most prominent demographic: children. Online casinos, as well as sports betting, are unlawful in California. Offering gambling products to children is an even greater problem, and it is prohibited not just across the country but across most of the world.

Among other things, complainants allege that children can use Robux, the game’s virtual currency, to engage in illicit activities such as gambling. Parents have also made legal claims that Roblox allows third-party sites to accept bets in Robux. The company has since filed cease and desist orders against 19 entities operating gambling outfits that accept the digital currency.

Roblox has since asked a federal judge to dismiss the case. However, they have, thus far, allowed the case to proceed. Unless Roblox makes a significant shift in its arguments for dismissal, the class action complaint will likely be heard by a jury in the near future.

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Facebook

Social media giant Facebook is no stranger to scandals, having garnered plenty of negative attention for its questionable privacy practices and data management tactics. The company has monetized its user data for years, but it hasn’t always engaged in by-the-book practices.

Its biggest black eye to date is a $725 million class-action lawsuit settlement stemming from the Cambridge Analytica scandal of 2018 . The British political consulting firm collected the personal information of roughly 87 million Facebook users by partnering with a Facebook app developer. The violation took place over several years, and the illicitly collected data was allegedly used to influence the country’s voters in the 2016 presidential election.

Facebook initially agreed to a $5 billion settlement to address several Federal Trade Commission (FTC) rule violations. It also faced numerous class action lawsuits from settlement class members in multiple states. Ultimately, each settlement class member consolidated their grievances into a single class action, and in 2023, Facebook announced a $725 million settlement agreement with the plaintiffs.

Normally, a settlement resolves after settlement class members have an opportunity to request compensation, and a judge issues a final approval. However, plaintiffs filed two appeal notices after the window to file a claim under the settlement agreement had closed, a motion that delayed the payout process until at least 2025. If significant changes are made to the proposed settlement, class representatives may request an additional claim filing window.

Verizon

Even as it has been affected by the Google Cloud Contact Center AI case, Verizon is facing backlash of its own. The telecommunications titan experienced a massive data breach in September 2023, with data records indicating that the personal information of over 63,000 employees was exposed. Verizon reported the breach in February 2024 and offered its workers credit monitoring and identity protection services.

Despite these efforts, plaintiff Carlson Malacon decided to file claims in early 2024, angered by the fact that Verizon discovered the breach in late 2023 but waited months to notify employees. The suit also asserts that Verizon failed to address cybersecurity vulnerabilities and could have prevented the incident. The case is still ongoing.

That’s not the only hot water Verizon has found itself in, though. It was the subject of another class action lawsuit regarding consumer admin charges. The plaintiffs alleged that the company was misleading about fees and increased admin charges for customers with postpaid wireless accounts.

Verizon agreed to a $100 million settlement to cover these unjust fees, with any customers who received admin fees between January 1, 2016, and November 8, 2023, being eligible to file a claim. The claim period closed on April 15, 2024, but payouts have been delayed because plaintiffs filed objections. If the court clears the objections, eligible Verizon customers could receive up to $100.

Amazon Prime

Ecommerce superstar Amazon is also facing a pair of class action claims. The first focuses on Prime Video’s new ad-supported subscription tiers. Plaintiffs claim that Amazon’s rollout of the Prime ad tier violates existing contracts with subscribers and consumer protection laws. People who renewed or signed up for a year subscription to Prime Video before the ads were announced are now facing unexpected costs as a result of the change. Plaintiffs argue that Amazon is engaging in unfair competition and false advertising by drastically altering its terms of service.

The second class action lawsuit alleges that Amazon violated the Video Privacy Protection Act (VPPA), which requires businesses to obtain a consumer’s explicit consent before sharing their viewing data. Plaintiffs claim that Amazon illegally shared viewing behaviors and other subscriber information with third parties. The incident raises concerns about how streaming services protect and leverage user data.

Both lawsuits are in their earlier stages, and neither has reached settlement agreements yet. Amazon continues to contest the claims and will likely ask for the cases to be dismissed.

The Future of Tech Regulation and Consumer Protection

The outcomes of these lawsuits and regulatory actions could have lasting effects on the tech industry. We may see the emergence of stricter regulations and new compliance standards. And tech companies may need to adopt more transparent practices and prioritize data privacy.

On top of that, the introduction of state laws like the CCPA is placing added pressure on tech companies to honor consumer privacy. These frameworks have stiff penalty schedules and can impose millions of dollars in fines.

Be Diligent About Protecting Your Data

Google’s class action lawsuit settlements have raised awareness of consumer rights and data privacy issues. And as these cases progress, they will likely continue to influence the tech industry’s practices and shape the regulatory landscape for years to come.

You must stay informed about these and other cases so you can do your part and help hold tech giants accountable for how they handle your data. Together, consumers like you have a powerful voice.

John Boitnott is a journalist and digital consultant who has worked at media companies for 25 years. He writes about startups, marketing and leadership at Entrepreneur , the Motley Fool , Business2Community , Jotform.com , and his blog .

This story first appeared on B2C.com.