Google has agreed to settle a major consumer privacy lawsuit for at least $5 billion over allegations that its Chrome browser’s Incognito mode unlawfully tracked user data, despite claims that it allowed private browsing.
The settlement ends a class action lawsuit originally filed in 2020 that accused Google of intentionally deceiving users into thinking their online activity in Incognito mode was not being monitored, when in fact Google Analytics and advertising services were tracking them to measure web traffic and target ads.
While no final settlement amount was disclosed in the preliminary agreement, lawyers for the consumers had been seeking at least $5,000 in damages for each affected user. With potentially millions impacted, the total value could surpass $5 billion, making it one of the largest consumer privacy settlements to date.
Incognito Broken Trust
At the heart of the case is the trust users placed in Google’s Incognito mode to deliver on its promise of “private browsing.” Introduced in 2008, Incognito prevents browser history and cookies from being stored locally on a user’s computer.
However, the lawsuit alleged internal Google communications showed Incognito mode was explicitly configured to keep tracking users via its analytics and advertising services. User data including IP addresses, browsing interests, and unique identifiers were collected to generate traffic measurement reports and ad profiles.
“Google marketed Incognito to users as guaranteeing privacy, but Google actually violated users’ privacy,” stated the original complaint. It argued Google’s practices amounted to intentional deception about the nature of Incognito mode.
Google had tried to get the case dismissed on technical grounds and avoided a jury trial. But with a February 2024 court date looming, the two sides agreed to settle. It comes just weeks after Google paid $23 million in a similar privacy lawsuit over search data.
Landmark Settlement
At over $5 billion, legal experts say the Incognito settlement would rank among the largest privacy class actions to date. In 2022, Meta settled a data handling lawsuit for $725 million. Some view it as a wake-up call for the tech industry’s data collection practices.
“This puts all tech companies on notice that there are massive risks to misrepresenting how consumer data is handled,” said Lindsey Barrett, staff attorney at Georgetown Law’s Institute for Public Representation.
Barrett wonders if the Incognito case will prompt users to read online privacy policies more closely going forward.
“Consumers may start questioning whether a tool actually provides privacy even if its name indicates that it does,” Barrett said. “We need transparency in how data flows behind the scenes.”
The scale of Google’s data collection stunned many outside observers when the internal communications became public. Attorneys involved described it as an “unaccountable trove” of detailed personal information.
New York Times tech columnist Farhad Manjoo wrote, “It’s as if you were followed everywhere you went online by an annoyingly diligent spy.”
Others wonder if the company may rebrand or clarify how Incognito functions following the high-profile lawsuit. Google was accused in legal filings of intentionally deceiving users with the privacy assurances of the tool’s name.
Path Ahead
While historic in scale, the settlement may not alter Google’s core business model which relies heavily on user data for targeting advertisements. But some experts believe it will spur lawmakers currently crafting federal privacy legislation to limit what companies can collect behind the scenes.
“Silicon Valley has demonstrated repeatedly that it will harvest as much data as technology allows absent meaningful legal prohibitions,” stated Albert Fox Cahn, executive director of the Surveillance Technology Oversight Project. “Google is exhibit one.”
As for Internet users, the case underscores the vast amounts of data generated daily as we browse, click, watch, and search. It highlights the gap between what many expect around online privacy versus how freely tech companies monetize that activity out of sight.
Going forward, we may think twice before clicking that “Incognito” button. The private browsing mode at the center of this historic settlement seems not so private after all.
