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Google to pay $5bn in incognito mode privacy lawsuit

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Google has reached a preliminary agreement to settle a consumer privacy lawsuit that sought at least $5 billion in damages over allegations of tracking users’ data even when they believed they were browsing the internet privately in “incognito” mode.

The lawsuit, filed in 2020, focused on Google’s Chrome browser and the incognito mode, which plaintiffs argued provided users with a false sense of privacy.

Internal Google emails presented in court indicated that users in incognito mode were being tracked by the tech giant for web traffic measurement and ad sales.

The judge overseeing the case confirmed in a court filing that Google’s lawyers had reached a preliminary settlement in the class-action lawsuit.

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The original complaint suggested that “millions of individuals” had likely been affected by Google’s practices.

Plaintiffs’ lawyers sought at least $5,000 for each user who had allegedly been tracked by Google Analytics or Ad Manager services while in private browsing mode and not logged into their Google account.

While the settlement amount has not been disclosed, it is expected to be less than the $5 billion sought.

The settlement comes after Google’s request for the case to be decided by a judge was denied. A jury trial was scheduled to commence next year. The lawsuit, filed in a California court, accused Google of intentionally deceiving users with the incognito option, claiming it infringed on users’ privacy.

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The original complaint contended that Google and its employees had the “power to learn intimate details about individuals’ lives, interests, and internet usage,” describing Google as an “unaccountable trove of information.”

No official amount for the settlement has been disclosed, and both Google and the lawyers for the consumers involved have not provided comments on the settlement.

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Formal approval of the settlement by the court is anticipated by February 24, 2024. In the United States, class-action lawsuits have become a primary avenue for addressing data privacy concerns involving major tech companies, given the absence of a comprehensive law governing personal data handling.

This settlement follows Google’s payment of $23 million in August 2023 to settle a separate case related to third-party access to user search data.

In 2022, Meta, the parent company of Facebook, settled a similar case, agreeing to pay $725 million over the handling of user data.

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