Editorial: User trust in Google takes another hit

Tech titan reaches settlement agreement after state said it collected location data without user consent

Google’s user trust took another hit on Thursday.

The tech behemoth agreed to a $93 million settlement with the state of California to resolve allegations that its location-privacy practices violated consumer protection laws in the state. The agreement follows a $391.5 million settlement reached with 40 states in November following an investigation into how the company tracked users’ locations since at least 2014.

The California Department of Justice and other states had determined, in particular, that Google was misleading users by collecting, storing, and using their location data for consumer profiling and advertising purposes without their informed consent.

It’s a heinous practice that only serves to tarnish the tech industry’s reputation at a time when it can least afford it, given the rapid advancements brought about by artificial intelligence.

To build trust in AI, people must believe that tech companies are serious about protecting consumers on all levels, including privacy.

With good reason, trust is at an all-time low.

According to the Harvard Business Review, trust in technology is a reflection of the decisions people make when developing, using, and implementing technology. The Google settlement with the state exemplifies how that can go wrong.

To safeguard users’ privacy interests in California, the agreement requires Google to:

• Display additional information to users when location-related account settings are enabled.
• Increase transparency regarding location tracking.
• Inform users before using location history data to create ad-targeting profiles.

In the settlement, Google did not admit guilt and issued the following statement: “Consistent with improvements we’ve made in recent years, we have settled this matter, which was based on outdated product policies that we changed years ago.”

That’s a lame excuse that does nothing to reassure Google users.

This year, Google is on track to generate more than $200 billion in advertising revenue. It will generate roughly 80% of the company’s total revenue. Its business relies heavily on providing consumer data to advertisers.

Americans cannot rely on Congress to ensure stronger safeguards. For more than a decade, federal lawmakers have been aware of the problem but have done nothing to address it.

It isn’t due to a lack of effort on the part of Bay Area representatives. The Online Privacy Act of 2023, introduced by Anna Eshoo, D-Palo Alto, and Zoe Lofgren, D-San Jose, is a revised version of legislation first introduced in 2019 and again in 2021.

Their legislation would establish the Digital Privacy Agency, which would be responsible for establishing rules, issuing guidelines, and enforcing federal privacy laws. But don’t hold your breath waiting for the act to become law, especially since Republicans control the House.

Artificial intelligence is the next big thing in technology. It is critical that Google and other leaders in the tech industry take the necessary steps to reestablish user trust in their products and leadership.