FTC issues record fine against Google. Google will pay $22 million to the Federal Trade Commission – the largest fine ever levied against a defendant for violating an existing consent order.
In April 2011, Google reached a settlement with the agency over charges that it allegedly used deceptive tactics and violated its own privacy policy when it launched its social networking feature, Buzz. When Buzz launched, Google’s privacy policy stated that “When you sign up for a particular service that requires registration, we ask you to provide personal information. If we use this information in a manner different than the purpose for which it was collected, then we will ask for your consent prior to such use.” FTC imposes a record $22.5 million civil penalty on Google for privacy misrepresentations. On August 9, 2012, the FTC announced that Google agreed to pay a record $22.5 million civil penalty to settle charges that it made misrepresentations to users of the Safari Internet browser when Google represented that it would not place cookies or serve targeted ads to those users.
In doing so, Google violated an earlier privacy settlement it had with the FTC. FTC Chairman, Jon Leibowitz, said “[t]he record setting penalty in this matter sends a clear message to all companies under an FTC privacy order. . . “[n]o matter how big or small, all companies must abide by FTC orders against them and keep their privacy promises to consumers, or they will end up paying many times what it would have cost to comply in the first place.” FTC imposes record $22.5 million fine on Google in for violation of prior privacy promises.