A landmark federal jury ruling dated September 3, 2025, has mandated Google to pay $425 million in damages following a class-action lawsuit alleging the tech giant collected personal data from millions of users who had explicitly disabled tracking features in their Google accounts. The case, heard in San Francisco, involved approximately 98 million users and 174 million devices, spanning over eight years.
The lawsuit charged that Google continued harvesting data through its "Web & App Activity" setting and partnered applications like Uber, Venmo, and Instagram, even when users believed their tracking was turned off. Plaintiffs initially sought over $31 billion in damages, highlighting the massive scale of the alleged privacy breach.
The jury found Google liable on two of three privacy violation claims but determined the company did not act with malice, thus no punitive damages were awarded. Google spokesperson Jose Castaneda stated that the decision "misunderstands how our products work," emphasizing that the collected data was non-personal, encrypted, and pseudonymous. Google has announced plans to appeal the verdict.
This ruling represents one of the largest privacy penalties against any technology company, reflecting increasing global regulatory pressure and public demand for transparency in data collection practices. It follows Google’s recent $1.4 billion settlement with Texas over privacy infringements and ongoing antitrust investigations in Europe.
Experts suggest the case highlights a persistent challenge in digital privacy: many users misunderstand how settings work, assuming disabling one tracking feature stops all data collection. The verdict may set a new precedent for user consent and digital rights enforcement worldwide.
As Big Tech companies face mounting scrutiny, this case signals a shift toward stricter accountability standards and more stringent regulatory frameworks on data privacy and competition in 2025 and beyond.
