Google Settles $5 Billion Lawsuit Over Incognito Mode Tracking

Google has agreed to settle a consumer privacy lawsuit seeking a minimum of $5 billion in damages over accusations of tracking user data during what was believed to be private internet browsing.

The focal point of the lawsuit revolved around Google’s “incognito” mode in the Chrome browser, with plaintiffs contending that it provided users with a misleading sense of privacy. Despite assurances of private browsing, internal Google emails disclosed in the lawsuit demonstrated that users in incognito mode were indeed being tracked for web traffic measurement and ad sales.

The settlement, confirmed through a court filing, indicates that Google’s legal representatives have reached a preliminary agreement to resolve the class action lawsuit, initially filed in 2020, asserting that potentially “millions of individuals” were affected.

Plaintiffs’ legal representatives sought a minimum of $5,000 for each user tracked by Google Analytics or Ad Manager services, even in private browsing mode without logging into their Google accounts. Although the settlement amount remains undisclosed, it is anticipated to be less than the initially sought $5 billion.

Both Google and the lawyers representing consumers have not issued a response to inquiries regarding the settlement.

The settlement follows Google’s unsuccessful bid to have the case adjudicated by a judge, leading to a scheduled jury trial for the upcoming year. Filed in a California court, the lawsuit alleged that Google’s practices deliberately misled users with the incognito option, violating their privacy rights.

The original complaint argued that Google, through its practices, wielded the “power to learn intimate details about individuals’ lives, interests, and internet usage,” accumulating a vast repository of detailed information.

A formal settlement is anticipated for court approval by February 24, 2024. In the United States, class action lawsuits have become a predominant avenue for challenging major tech companies on data privacy concerns, given the absence of comprehensive laws governing personal data handling.

In a similar vein, Google settled a case for $23 million in August over third-party access to user search data, while in 2022, Meta, Facebook’s parent company, settled a comparable case for $725 million related to user data handling.