Google has been fined $60 million for misleading some consumers about the collection and use of their personal location data on Android phones between January 2017 and December 2018.
Consumer watchdog the Australian Competition and Consumer Commission (ACCC) took Google to the Federal Court last year, saying the problem may have affected around 1.3 million Australian customers.
The Federal Court found that Google represented to some Android users that the setting titled Location History was the only account setting that affected whether Google collected, retained and used personally identifiable data about their location.
But there was another account setting, titled Web and App Activity, that also allowed Google to collect personal information, which was turned on by default.
Google fixed the issue in December 2018.
Descriptions of the Location History settings and Web and App Activity settings offered to Android mobile users between April 30, 2018 and December 19, 2018. (Supplied: ACCC)
“Used by Google to target ads to some consumers”
The ACCC and Google’s overseas arm jointly agreed to the $60 million penalty.
ACCC chairwoman Gina Cass-Gottlieb said the heavy penalty was appropriate for compromising such sensitive information.
“[It] sends a strong message to digital platforms and other companies, large and small, that they must not mislead consumers about how their data is collected and used,” said Ms. Cass-Gottlieb.
“Google, one of the world’s largest companies, was able to retain location data collected through the Web and App Activity settings, and Google could use the retained data to target ads to some consumers, up to and including all if those consumers had “Location history settings turned off.”
The Federal Court also ordered Google to adjust its policies to ensure a commitment to compliance and to provide training to staff on Australian consumer law.
Google will also have to pay some of the ACCC’s costs.
Google Australia was spared a separate penalty because it had no role in preparing the location data messages, which the court found to be in breach of the law.