ACCC sues Google over alleged location data misuse

The Australian Competition and Consumer Commission (ACCC) has announced it has instituted proceedings in the Federal Court against Google, over allegations the tech giant breached the Australian Consumer Law from at least January 2017.

In documents lodged to the court, the regulator explained that Google overstepped law when it made on-screen representations on Android mobile phones and tablets that "misled consumers" about the location data Google collected or used when certain settings were enabled or disabled.

“We are taking court action against Google because we allege that as a result of these on-screen representations, Google has collected, kept and used highly sensitive and valuable personal information about consumers’ location without them making an informed choice,” ACCC chair Rod Sims said.

The ACCC’s case regarding the collection of location data focuses on two Google Account settings: one labelled ‘Location History’ and another labelled ‘Web & App Activity’.

The regulator alleged that from January 2017 until late 2018, it was misleading for Google to not properly disclose to consumers that both settings had to be switched off if consumers didn’t want Google to collect, keep and use their location data.

The ACCC also argued that Google account holders trying to maintain their privacy had been misled by Google about what needed to be done.

“Our case is that consumers would have understood as a result of this conduct that by switching off their ‘Location History’ setting, Google would stop collecting their location data, plain and simple,” Mr Sims said.

“We allege that Google misled consumers by staying silent about the fact that another setting also had to be switched off.

“Many consumers make a conscious decision to turn off settings to stop the collection of their location data, but we allege that Google’s conduct may have prevented consumers from making that choice.”

Furthermore, the ACCC has taken aim at Google for failing to disclose that the data it collects may be used for a number of other purposes unrelated to the consumer’s use of its services.

“We consider that because of Google’s failure to disclose this use of data, consumers were and still are deprived of the opportunity to make an informed choice about whether to share their personal location data with Google,” Mr Sims said.

“Transparency and inadequate disclosure issues involving digital platforms and consumer data were a major focus of our Digital Platforms Inquiry, and remain one of the ACCC’s top priorities.”

By making the collection and use of data representations, the ACCC alleged that Google also engaged in conduct liable to mislead the public about the nature, characteristics and suitability for purpose of the Android operating system, Google services and Google Pixel phones.

The ACCC is seeking penalties, declarations and orders requiring the publication of corrective notices and the establishment of a compliance program.