Google settles Buzz brouhaha, other privacy suits pending

By Joseph A. Nicholson

The world’s dominant online search company appears to also be one of the world’s biggest violators of consumer privacy rights. On March 30, 2011 the Federal Trade Commission announced a settlement of charges against Google, Inc. that it used deceptive practices when it rolled out its Buzz social network in 2010. As part of the settlement, Google agreed to implement a comprehensive privacy program to protect consumer data, and will submit to independent privacy audits for the next 20 years. Public comments can still be posted here.

According to the FTC complaint, the Buzz rollout consisted of a message from Google allowing gmail users to either enroll in the program or opt-out. One deceptive practice, alleged the FTC, was that even those users who clicked to opt-out were enrolled anyway. But, additionally, even those who agreed to participate in Google Buzz were never adequately informed that a list of the people they emailed most would be made public as part of the network’s default settings.

The rollout of Google Buzz also prompted a class action lawsuit brought by users who claimed publication of their email lists violated their privacy. The lawsuit alleged violations of the Stored Communications Act, Wiretap Act, and Computer Fraud and Abuse Act. In October, a San Jose federal district judge tentatively approved a proposed settlement agreement in the class action in which Google would create an $8.5 million fund, approximately 13 cents per 32 million class members. If approved, the settlement would require about $6 million of the fund be distributed to internet privacy organizations like the Electronic Frontier Foundation and the Berkeley Center for Law and Technology. Attorneys for the class would receive more than $2 million collectively, while Buzz users would receive no direct compensation. In agreeing to the settlement, Google admits no wrongdoing, but has publicly apologized for mistakes made with Buzz.

Other consumer privacy lawsuits still pending against Google include at least two class actions alleging wiretap violations for contextual ads sent to gmail users. Meanwhile, Google is still defending against several class actions alleging that roving Google Street View cars captured private data from wi-fi networks, and was recently fined 100,000 euros for similar activity in France.