Thanks to a class action settlement against Google, the company has agreed to pay $135 million to Android users in the United States, with the settlement reached in California federal court. The lawsuit claims that Google conducted passive data transfers without users’ knowledge or consent between November 12, 2017, and the final date of the settlement period. The company was accused of unlawfully accessing and utilizing data and sending that information over cellular networks and Wi-Fi, even when the devices were idle.
It’s a breach of privacy protections and an egregious violation of consent practices, as Google apparently never disclosed doing these actions. Data transfers occurred over networks regardless of whether users disabled the option to allow background data usage. That function clearly was not working as described and has been considered deceptive — and is a feature you should never use on your Android phone. The $135 million non-reversionary settlement fund will go to more than 100 million Americans who used their Android devices during the settlement period. California residents are excluded from this settlement as they are covered by a separate $314 million class-action suit (via Top Class Actions).
As part of the more recent suit, if you are affected, you shouldn’t have to do anything — you’ll automatically receive a one-time, pro-rated cash payment in the payment account associated with your current Google account email address. Payouts should go to PayPal, Venmo, or Zelle-connected accounts and are limited to $100 per person. A settlement administrator will provide an online form for those who want to update payment methods or account information. The date of final approval is yet to be determined.
What passive data transfers are alleged in the Google lawsuit?
When an Android device updates app data or transfers data, it’s supposed to have the express consent of the user. Google Play shouldn’t update apps over mobile networks if you have background data usage disabled in settings, for example. This lawsuit alleges that Google knowingly programmed Android to handle “passive data transfers,” which means Android was transferring data and using mobile data without consent, even when Google apps were closed, location sharing had been disabled, or the phone was locked.
This is not the first time Google has been accused of deceptive practices. More recently, Android users received payments from another settlement that claimed Google harmed consumers for years by “suppressing competition” and “unfairly raising prices” in its app store, monopolizing mobile experiences on the platform. In 2018, Google was fined by the EU for tracking user location data even when users opted out and disabled it, so the company is no stranger to antitrust cases.
As part of the agreement, Google must now disclose the data collection via a flow screen when Android users first set up their device. In addition, Google must disclose potential data activities in the Google Play Terms of Service and Help Center pages. It must also take measures to truly deactivate Google Play Services when the “allow background data usage” toggle is off to avoid further deceptive practices.
