Google has been ordered to pay 425 million dollars in a class action lawsuit after a court found the company misled users about how their data was being collected and stored.

The case began in July 2020 when Google user Anibal Rodriguez accused the search giant of tricking users with its “Web & App Activity” setting. This feature was supposed to allow people to stop Google from tracking their online and in app activities. In reality, Google continued to gather data even after users switched it off.

Much of this data came through Firebase, a tool used by developers to monitor app activity. Firebase is embedded in 97 percent of the top 1000 Android apps and over half of leading iOS apps. This meant Google was still collecting data from platforms like Uber, Venmo, Shazam, the New York Times, Duolingo, and Instagram.

The lawsuit argued that Google’s system created a dual method of data collection, misleading nearly 98 million users into believing they had full privacy. While Google claimed it anonymized the data, the court ruled the company was not clear enough about how this worked.

Google’s lawyers insisted users had been properly informed, pointing to on screen prompts that ask users to confirm their choices. But jurors were not convinced. One juror said most users are “skimmers, not readers,” which means Google needed to communicate its practices more clearly.

The plaintiffs originally demanded 31 billion dollars in damages, but the final ruling awarded far less, averaging around four dollars per user. Google has already announced plans to appeal. A spokesperson said, “This decision misunderstands how our products work. Our privacy tools give people control over their data, and when they turn off personalization, we honor that choice.”

This ruling adds to a growing list of privacy battles for Google. In 2023, it paid 392 million dollars to 40 states for secretly storing location data, another 40 million to Washington state, and 85 million to Arizona. Later that year it paid at least 5 billion dollars in an incognito mode settlement and in May 2025 it agreed to pay 1.38 billion dollars to Texas over related claims.

Internal communications revealed during the case showed that Google executives deliberately chose vague language around data collection. They admitted that being fully transparent would “sound alarming to users.” This confirms what privacy advocates have long argued. Big Tech companies often soften their privacy promises to avoid losing trust, while continuing to harvest massive amounts of user data.

For the everyday user, the takeaway is simple. Do not rely on Big Tech companies to protect your privacy. Always assume they are collecting more than they admit and limit what you share online.