Google's FTC Settlement Over Privacy Breach Makes History

Google has agreed to a landmark settlement with the Federal Trade Commission over charges that the company used "deceptive tactics" and violated user privacy when it launched Google Buzz in 2010.

Google's settlement is unprecedented, not only because it marks the first time the FTC has accused a company of violating privacy rules spelled out under the U.S.-EU Safe Harbor Framework, but also because it is the first settlement requiring a company to institute a "comprehensive privacy program" as part of the agreement, according to the FTC.

Google will also have to submit to regular, independent privacy audits once every two years for the next 20 years and will be required to obtain "affirmative consent" from users before changing how it shares their personal data with third parties.

Google's social networking service Buzz sparked an outcry when it launched after it exposed users' most frequent contacts to others.

The FTC wrote in a statement, "The proposed settlement bars the company from future privacy misrepresentations, requires it to implement a comprehensive privacy program, and calls for regular, independent privacy audits for the next 20 years."

In a blog post, Google apologized for the "mistakes we made with Buzz" and noted that the FTC's announcement "thankfully put this incident behind us."

There is no monetary penalty, but Jessica Rich, the deputy director of the FTC's Bureau of Consumer Protection, noted that the agency sees the settlement as a "tough order that will impose substantial costs," particularly as Google will have to hire an outside auditor to monitor their privacy policies.

Google will also be charged $16,000 per violation to the FTC's order. Rich said that the Google Wi-Fi incident , in which Google mistakenly collected passwords and other personal information from users via its Street View project, would have constituted a violation to the FTC's order.

"I think that many provisions in this order are good business practices that we would expect to see followed throughout the industry," Rich said of the settlement.

Comments

[lee thomason]

09:39 PM on 04/11/2011

With this order as to Google Buzz, then the Epsilon data security breach, please consider supporting my petition to FTC to institute rulemaking on SMIIS privacy policies. http://goo.gl/jHpkr

[Beth Rosenberg]

12:59 PM on 04/06/2011

Please be a consumer advocate and help the Electronic Privacy Information Center (epic.org) submit a million comments to the FTC on Google privacy this month:

http://epic.org/fixgoogleprivacy/default.php

[MyTake]

09:33 PM on 03/30/2011

I hope the OUTSIDE AUDITOR they hire is named Julian Assange because there are a TON more of PRIVACY horror stories in Herr Schmidt's closet that need to be exposed.

Herr Schmidt, has routed all Google search and server data to those massive NSA data farms where is it processed, sliced and diced, merged with government and Corporate records before it is fed to a Global Population Database in Brussels.

But Herr Schmidt holds Bilderberg membership status, so he will be well protected by the Corporate Media from any further NASTY and CREEPY reporting.

This boy has a lot of STAINS on his shirt and the next clown that should be paraded before FTC is wonder boy Zuckerberg.

Oh, I am sorry, the Teflon Prez. had dinner with this guys not to long ago. I wonder if he raised the FTC investigations with them. Probably not because he was PHISHING for campaign cash!

I hope Herr Schmidt will write a program that will erase all query activity of the Prez. from his new Ipad 2 that he picked up the other day.

I hope his first Goggle Search contains the words: The Hydrogen Economy!

Because, Herr Schmidt installed a Bloom Hydrogen Fuel Cell Energy Server at one of his buildings in CA which is greatly reducing the carbon footprint of that building.

[JuanGuapo]

09:07 PM on 03/30/2011

You know Bing is good this time of year.....

[RandomAmericanMan]

09:42 AM on 03/31/2011

Bing is not now, has not, and never will be good.

[JuanGuapo]

10:21 AM on 03/31/2011

Funny, I feel the same way about Google.

[crayola 08b]

03:56 PM on 03/30/2011

he's got Beevis n Butthead eyes.

[billstu]

03:47 PM on 03/30/2011

I stopped using google for searches ... shouldn't you ...

[JasonMcl]

08:03 PM on 03/30/2011

Not really, because all of them use your information to keep the engine paid for and working for you.

[RandomAmericanMan]

09:42 AM on 03/31/2011

Your "safe" alternative is?

[billstu]

12:54 PM on 03/31/2011

there isn't one ... I just use other search engines like yahoo or bing to spread the corruption around

[billstu]

03:46 PM on 03/30/2011

is it me or does this guy look like he belongs in the Third Reich

[TeraWatt60]

05:55 PM on 03/30/2011

certainly in Madame Tussaud's....

[MyTake]

09:15 PM on 03/30/2011

Well, he is in a way.

He holds Bilderberg Group membership and that Group arose out of the Third Reich!

[billstu]

12:55 PM on 03/31/2011

Isn't Bill Clinton a member of the Bilderberg

[Whitemellon]

03:35 PM on 03/30/2011

"There is no monetary penalty.". Of course there is no monetary penalty. Those are only for the little people. Google is a huge campaign contributor and we have a very expensive election coming up. The justice department wouldn't want to make them mad and have them give all the money to the other party.

[fruity]

03:08 PM on 03/30/2011

The FTC apparently didn't feel it was necessary to go after Yahoo when immediately after the Google Buzz roll out, they made changes to their buzz product on yahoo email accounts. When I logged into my yahoo email they were requesting backup email addy. after I did that, and I went back in.. i found that I had some kind of yahoo social profile that was made public. I never had that before.

[fruity]

03:06 PM on 03/30/2011

I'm not sure how i feel about the US FTC enforcing joint internationl rules. In fact, I wonder if this is a trend and whether it will impact open records / FOIA requests

[TeraWatt60]

05:57 PM on 03/30/2011

That will be the only way that "Privacy" or any other concerns will be enforceable  short of web censorship since a cheesy site can simply buy hosting in outside the US if the US tries to go it alone.

[Highball]

02:29 PM on 03/30/2011

Oooooh! That scary FTC!

I'm sure that Google are just shaking in their boots now. I mean, they may have to pay a $16,000 fine on day. Wow.

*eye-roll*

[Lost Rights]

02:25 PM on 03/30/2011

No monetary penalty so the get to keep the money they made off it. No criminal charges. Seems like there is no downside or penalty for corporate criminals.

Yet today Google, I read today, is opting in us in the new gmail to google ad thing.

[Apathy Man]

02:23 PM on 03/30/2011

Now if only Facebook gets the same treatment.

[BobLobblaw]

02:17 PM on 03/30/2011

Sounds like the ole corporate hand-slap. Big deal.

[Lost Rights]

02:35 PM on 03/30/2011

I can't believe you got that name, one of the funniest ever. Your blog turns it into the absurdly funny.
As I recall, BobLobblawBlog.
-Mr F.

[RandomAmericanMan]

09:45 AM on 03/31/2011

Gobious some coffee. Arrested Development. A Bright spot in otherwise crappy television.