Google hit with $425.7 million jury order over user privacy settlement

The jury ordered Google to pay millions in damages

A federal jury in San Francisco ordered Google to pay $425.7 million after finding the company illegally tracked users’ data despite privacy settings being turned off.

The decision came after a two-week trial covering nearly 98 million smartphones in the U.S. between 2016 and 2024. On average, damages amount to around $4 per device.

The verdict highlights how courts hold big tech companies accountable for privacy breaches that many users assumed they were protected against.

The case spanned nearly a decade of tracking

The class-action lawsuit accused Google of spying on users for almost ten years. It claimed that Google continued collecting app and web activity data even after users disabled tracking features.

This covert surveillance affected Android and iOS devices through apps and websites using Google’s analytics tools.

The extended timeline of violations made the case particularly significant, suggesting Google had benefited financially from data collection that contradicted its public promises on user privacy controls.

Google denies wrongdoing and plans to appeal

Google quickly announced its plan to appeal the jury’s verdict. Company spokesperson Jose Castaneda said the decision “misunderstands how our products work,” arguing that its privacy tools give people control over their data.

Google maintains that when users turn off personalization, it honors that choice. The company also stressed that the collected data was pseudonymous, encrypted, and not tied directly to user identities.

But, to user identities. The appeal could delay or even overturn payouts if higher courts side with Google’s defense.

Plaintiffs argued massive illegal profiteering

Lawyers representing users accused Google of making billions of dollars by secretly collecting data and using it for targeted advertising.

They initially sought more than $30 billion in damages, claiming Google’s practices amounted to illegal profiteering. While the jury awarded a fraction of that amount, the case established a powerful precedent.

By highlighting how ad sales linked to unauthorized data use generate enormous profits, plaintiffs successfully argued that tech giants must pay when user privacy is ignored.

Jury rejects punitive damages but rules against Google

The jury found Google guilty of violating California privacy laws but did not determine that the company acted with malice, oppression, or fraud.

That distinction meant Google avoided punitive damages, which could have multiplied the payout significantly. Instead, the $425.7 million was based strictly on compensatory damages.

Even so, the ruling carries weight as it affirms that Google misled users about privacy settings and failed to respect the limits consumers believed they had placed on tracking.

Lawyers call the ruling a victory for consumers

Attorneys representing the plaintiffs celebrated the jury’s decision as a landmark win for user rights. John Yanchunis of Morgan & Morgan said the verdict sends a strong message to the tech industry: Americans will not sit back while their data is collected and monetized without consent.

David Boies, another lawyer for the class, echoed this sentiment, calling the jury’s ruling a significant step toward holding Silicon Valley accountable for deceptive practices around data and privacy controls.

Privacy settings are at the heart of the dispute

The case centered on Google’s “Web & App Activity” setting. Millions of users believed turning this off stopped the company from tracking activity across third-party apps and websites.

Plaintiffs argued Google’s disclosures were vague and misleading, leading users to think they had more control than they did.

The jury agreed that Google unlawfully continued data collection despite these settings being disabled, ruling that the company’s practices violated California’s privacy statutes and misrepresented users’ actual level of protection.

Google’s defense argued that the data was anonymous

Google’s lawyers claimed the company did not misuse personal information, insisting that the collected data was non-personal, pseudonymous, and stored securely in separate, encrypted locations.

They argued that it was not linked to specific accounts or individuals. According to Google, users should have understood that disabling Web & App Activity only limited personalization, not all data collection.

The plaintiffs countered that the language was intentionally vague and deceptive. The jury ultimately sided with the users, rejecting Google’s explanation.

The lawsuit began in 2020 and grew into a class action

The case, Rodriguez v. Google LLC, was first filed in July 2020 and later certified as a nationwide class action. U.S. District Judge Richard Seeborg approved the class, covering about 98 million people and 174 million devices nationwide.

Plaintiffs included Android and iOS users, as Google’s tracking tools are embedded in countless apps. The lawsuit gained momentum as growing awareness of privacy rights made courts more willing to scrutinize Silicon Valley’s practices.

Billions were sought initially, but the payout is smaller

Plaintiffs’ lawyers initially argued for more than $31 billion in damages, reflecting the estimated revenue Google earned through unauthorized tracking.

Ultimately, the jury calculated compensation at just $425.7 million, a fraction of what was requested. Even though the payout is smaller, it is still one of the most significant privacy-related jury awards in the U.S. against a tech company.

The case demonstrates the difficulty of securing sky-high damages but shows that accountability is possible.

Case overlaps with Google’s antitrust battles

The verdict came just one day after Google narrowly avoided a more damaging outcome in a landmark antitrust case in Washington, D.C. There, the Department of Justice sought to break up Google’s dominance in search.

Instead, a judge ordered the company to share search data with rivals. These back-to-back rulings underscore how regulators and courts are increasingly targeting Google’s practices, not just on competition but also on consumer privacy and trust.

Privacy violations tied to ad targeting profits

At the center of the dispute was Google’s use of covertly gathered data to boost advertising revenue. Plaintiffs alleged that the company tracked user behavior across third-party apps like Uber, Instagram, and Venmo, then used that data to tailor ads.

These targeted ads were highly profitable, making privacy violations a business model rather than an accident. The jury’s decision suggests courts will hold companies accountable when data collection practices cross the line into exploitation.

This is not Google’s first privacy penalty

Google has faced multiple lawsuits over privacy practices in recent years. In 2024, the company agreed to pay nearly $1.4 billion to settle allegations over privacy law violations with the state of Texas.

In 2023, it decided to delete billions of private browsing records in a case accusing it of tracking users in “Incognito” mode. The $425.7 million jury award is part of a broader pattern of legal challenges testing how far Google can push data collection.

Appeal could delay payouts for years

Although the jury ordered damages, it remains unclear when or if eligible users will see compensation. Google’s planned appeal could take years to resolve and may reduce or eliminate payouts.

Even if the verdict is upheld, courts must determine how payments will be distributed among nearly 98 million class members. For now, users are left waiting, and the timeline for any financial relief depends entirely on the outcome of Google’s appeal.

Broader implications for online privacy laws

This case underscores the growing importance of privacy legislation in the U.S. California’s privacy statutes gave plaintiffs the legal foundation to win.

Tech firms face mounting legal risks as more states introduce or expand privacy laws. Lawmakers may also view this case as evidence of overdue federal privacy regulation.

As digital life becomes unavoidable, cases like this highlight the gap between consumer expectations and how companies handle sensitive personal data.

See how Google is reshaping its cloud strategy with new offers tailored for the US government.

Google’s long fight over user trust continues

The $425.7 million verdict is the latest in a series of challenges to Google’s credibility on privacy. Even if the company wins its appeal, public trust will likely suffer.

Many consumers will question whether privacy settings in Google’s products protect them. In an era where data is gold, trust is everything, and rebuilding it is far harder than fighting lawsuits. For Google, the bigger challenge may be repairing its relationship with users.

Learn how Google’s next move on unverified apps could change the way sideloading works.

What do you think about the Google lawsuit against violating users’ privacy with incognito mode? Please share your thoughts and drop a comment.

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This slideshow was made with AI assistance and human editing.