States, DC sue Google over user location tracking
The District of Columbia and three states are suing Google. They allege the internet search giant deceives consumers and invades their privacy by making it nearly impossible for them to stop their location from being tracked. (Jan. 24)
AP
Arizona has received a green light to take technology giant Google to court over allegations of misleading consumers and invading their privacy, though the state hasn’t yet announced its next move in the nearly four-year legal effort.
That follows a Jan. 25 ruling by a Maricopa County Superior Court judge who gave the office of state Attorney General Mark Brnovich a partial victory against Google in a case that alleged deceptive practices.
Brnovich’s office hasn’t yet announced whether it plans to pursue a jury trial.
The lawsuit, filed in May 2020, alleges that the internet and search engine company tracked the location of users to generate higher advertising revenue, invaded their privacy without their consent or knowledge and failed to give users a clear way to cancel location tracking.
Google called the Arizona suit an attempt to “mischaracterize and inaccurately describe” the tools it provides users regarding location information. The company insists its settings and controls are transparent and easy to understand, and that they were updated in recent years.
Timothy Thomason, a Maricopa County Superior Court judge, in a Jan. 25 ruling allowed the case to proceed to a jury trial but denied a key argument by Brnovich’s team that the sale of advertising to third parties must be connected to the sale or lease of merchandise in order to violate Arizona consumer fraud laws.
A 10K annual report filed Feb. 2 by Alphabet, Google’s parent, cites several pending lawsuits from the European Community, the federal Department of Justice and various state attorneys general related to its business practices. These include complaints about advertising practices, though Alphabet didn’t mention the Arizona action specifically. The company said it considers the lawsuits to be without merit and vowed to defend itself.
A mixed ruling for attorney general
Brnovich’s office responded to Thomason’s Jan. 25 ruling by repeating the state’s contention that Google has employed “deceptive and unfair practices to obtain users’ location data” to generate advertising revenue. “We will not stand by as Big Tech continues to invade Arizonans’ personal privacy,” he said in a statement.
By tracking users’ locations, Google can charge higher advertising rates to nearby businesses, the lawsuit alleges.
But Google responded by calling the court action a “significant legal ruling” in its favor.
“The (Arizona) AG is somehow claiming this as a big victory but in reality, a judge rejected his central argument,” the company said in a blog.
Google’s primary argument, Thomason noted, is that there wasn’t any deception at the time consumers bought Google products including smartphones. The Arizona Consumer Fraud Act is mainly intended to address situations where consumers are misled while buying or leasing merchandise, the judge explained. Rather, Google has argued that any alleged deceptions occurred after sales were completed.
Among other charges, the Arizona lawsuit claims Google misled consumers on its settings, continued to use location histories even when people turn off these permissions and didn’t inform users when they changed their permissions status.
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The company’s practices have made it difficult for users of Android phones equipped with Google’s operating system to know what information is being retained. The company’s policies also affect people who don’t buy Google merchandise but access Google Maps or other apps and services, the lawsuit charged.
Google, among various points in its defense, noted that devices like smartphones are designed to track locations to help users navigate around traffic jams or find local pizzerias, for example. “It’s integral to how they work,” the company said, while insisting that users have many options including deleting or pausing location histories and more.
Gist of the Arizona complaint
The state’s May 2020 lawsuit against Google seeks monetary relief such as forcing the company to refund revenue generated from its allegedly deceptive activities against Arizonans.
“While Google users are led to believe they can opt-out of location tracking, the company exploits other avenues to invade personal privacy,” said Brnovich in a statement at the time. “It’s nearly impossible to stop Google from tracking your movements without your knowledge or consent.”
The lawsuit noted that Google derives most of its revenue and profit from selling ads and displaying them to users. Google collects detailed information about users, including their physical locations, to generate premium advertising rates from local businesses, the suit continued. Google then validates the effectiveness of these ads by reporting to advertisers how often online clicks are converted into real-world store visits. All of this is done without the consent or knowledge of users, according to Brnovich’s office.
False sense of security
The state filed the lawsuit following an August 2018 Associated Press article that detailed how users are lulled into a false sense of security, believing Google provided users with the ability to disable their location histories. But as the article and lawsuit allege, Google can continue to track locations through other settings, such as Web & App Activity, and uses that information to sell ads.
According to the lawsuit, Google’s disclosures regarding Web & App Activity misled users into believing that setting had nothing to do with tracking locations. Also, the company’s disclosures didn’t mention that location information was collected, the suit added.
“Arizona’s investigation has also revealed that Google uses deceptive and unfair practices to collect as much user information as possible and makes it exceedingly difficult for users to understand what’s being done with their data, let alone opt-out,” Brnovich’s office said in a statement. The company presents the public with a “misleading mess of settings, some of which seemingly have nothing to do with the collection of location information.”
The heavily redacted Arizona complaint cites extensive testimony from Google employees given under oath and contains nearly 100 additional exhibits, including internal documents obtained from Google over the course of the investigation.
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