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$5 Billion Lawsuit Punishment On Google’s Fake “incognito mode” on Chrome

Google chrome private browsing incognito. (Photo: © Mohamed Ahmed Soliman | Dreamstime.com)

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By Aakansha Malia

April 11, 2024
7:24 pm
Los Angeles, CA

The discourse surrounding privacy has once again gained prominence, with tech titan Google at the forefront of attention for its decision to purge billions of data records belonging to users who believed they were privately navigating through the ‘incognito mode,’ as part of a concerted effort to settle a significant $5 billion legal dispute. This revelation emerged from a proposed settlement filed on April 1 in Oakland, California, stipulating extensive changes such as the cessation of third-party cookie tracking and the imposition of stringent restrictions on advertising data collection during private browsing sessions, measures that will extend beyond the borders of the United States. The lawsuit, initiated in 2020, could potentially compel Google to disburse a staggering sum of USD 5 billion, or USD 5,000 per affected user, for

In response to this development, David Boies, counsel for the plaintiffs, lauded the settlement as “This settlement is an historic step in requiring dominant technology companies to be honest in their representations to users about how the companies collect and employ user data, and to delete and remediate data collected,”. Meanwhile, Google’s spokesperson, Jose Castaneda, expressed contentment at the resolution, maintaining the stance that the lawsuit lacked merit. He asserted, “We never associate data with users when they use Incognito mode, but are happy to delete old technical data that was never associated with an individual and was never used for any form of personalization.”

The class-action lawsuit levied against Google accused the company’s analytics, cookies, and applications of illicitly tracking individuals, thereby transforming Google into an unregulated repository of information. Internal communications within Google allegedly revealed that users engaging in incognito mode were subject to surveillance by the search and advertising colossus to gauge web traffic and facilitate ad sales. These revelations followed Google’s assertions that incognito mode disables extensions, logs users out of accounts, and refrains from storing web history or cookies. A hearing is scheduled for July 30 before Judge Yvonne Gonzalez Rogers, who will preside over the approval of the agreement, thus enabling Google to avert a trial in the class-action lawsuit.

The Google Incognito lawsuit unfolds against the backdrop of heightened scrutiny surrounding privacy infringements, leading to financial penalties. However, Google is not the only tech giant under the microscope for privacy transgressions. Amazon, Google, Apple, Meta (formerly Facebook), and Microsoft have encountered legal challenges globally due to unethical practices eroding user trust. In 2023, Amazon incurred two separate penalties for privacy breaches, one amounting to $25 million for purportedly retaining children’s data and another totaling $5.8 million for purportedly failing to restrict access to Ring security videos by employees and contractors. Facebook has faced repeated censure for misusing personal data, culminating in a record-breaking fine of 1.2 billion euros for contravening EU privacy regulations by transferring user data to servers in the United States. Twitter, now rebranded as ‘X,’ faced criticism for implementing a policy enabling the collection of users’ biometric data and access to encrypted messages. Microsoft and OpenAI encountered litigation last year from anonymous individuals, alleging that ChatGPT collected and disclosed their personal information without adequate notice or consent.

In this digital age marked by escalating reliance on artificial intelligence and major tech conglomerates, there is a pressing need for enhanced accountability from both corporations and governments to safeguard consumer rights. Concurrently, there is a burgeoning demand for robust privacy safeguards, underscoring a growing awareness of digital footprints among citizens.

Edited by: Elena Potek