Google’s $425M verdict for abusing user data
A federal jury in San Francisco has ruled against Google in a major class-action privacy lawsuit, ordering a payout of $425 million (approximately $4 per device) for collecting data from nearly 98 million users across 174 million devices—despite those users having disabled the “Web & App Activity” tracking feature. The jury determined that Google violated state privacy laws over an eight-year span.
Filed in 2020, the lawsuit centers on allegations that Google continued accessing and storing user data via third-party apps—like Uber, Venmo, and Instagram—even when privacy controls were turned off. Plaintiffs sought over $31 billion in damages, but the jury found Google liable on two of three privacy violation claims, though without awarding punitive damages due to the absence of malice.
Google rejected the verdict, calling it “a misunderstanding of how our products work.” A spokesman, José Castañeda, emphasized that the company’s privacy tools are designed to honor user preferences, contending that collected data was pseudonymous, segregated, and not linked to any individual identity. Google has said it plans to appeal the decision.
Lawyers representing the users, such as John Yanchunis of Morgan & Morgan, hailed the verdict as a meaningful win for privacy rights and a warning to tech firms. Despite the lowered judgment compared to the original request, they hope the ruling sends a clear message: Americans won’t tolerate invasive data collection done behind their back.
This judgment follows other privacy-related penalties against Google, including a $1.4 billion settlement with Texas earlier this year and a 2024 order to destroy user data collected during private browsing mode. Together, these developments underscore increasing legal and public scrutiny of the tech giant’s handling of user data and privacy adherence.
Key Legal Outcomes
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$425 million verdict against Google in a class-action privacy violation case.
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Violation of user privacy by collecting data after users disabled tracking.
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Liable on two of three claims, but no punitive damages due to lack of proven malice.
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Covering roughly 98 million users and 174 million devices, yielding about $4 per device.
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Google plans to appeal, disputing the verdict as flawed.
Why It Matters
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Consumer privacy breached: The case represents a rare legal rebuke against tech companies for violating explicit user consent.
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Pressure on transparency: The verdict intensifies demands on major platforms to strictly honor privacy settings.
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Class-action impact: Even modest per-user awards can lead to large-scale consequences and corporate reforms.
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Possible precedent: This may embolden other plaintiffs to pursue similar lawsuits and shape future digital policy.
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Ongoing regulatory spotlight: Alongside prior settlements, this points to increasing governmental and legal scrutiny on big tech.
Publication Details & Source
- Publication Date: September 4, 2025
- Sources & Live Links:
- Money For Lunch (Google faces $425M verdict for collecting user data despite privacy controls)
