Privacy groups criticize proposed $8.5 million Google settlement

Five US privacy groups have opposed a proposed $8.5 million settlement with Google in a class-action lawsuit over search privacy, as it fails to require Google to change its business practices, they said.

Google was sued in October 2010 in the U.S. District Court for the Northern District of California. The Internet giant allegedly transmitted user search queries to third parties without their knowledge or consent in order to enhance advertising revenue and profitability. Google shares search queries "via referrer headers," according to a court document, which identify the address of a Web page that linked to the current page. When a Google user clicks on a link from Google's search results page, the owner of the website that the user clicks on will receive from Google the user's search terms in the referrer header because the search terms are included in the URL. The search terms can contain users' real names, street addresses, phone numbers, credit card numbers, and Social Security numbers, all of which increases the risk of identity theft, according to the original complaint. Those queries can also contain highly personal and sensitive issues, such as confidential medical information, racial or ethnic origins, political or religious beliefs, or sexuality, according to the complaint. Part of the settlement fee is meant to cover settlement administration expenses and part will be paid to the World Privacy Forum, Carnegie-Mellon, Berkman Center for Internet and Society at Harvard University, and Stanford Center for Internet and Society among others, according to the document. The recipients must agree to devote the funds to promote public awareness and education, and/or to support research, development, and initiatives, related to protecting privacy on the Internet, according to the proposed settlement. But monetary settlements are not good enough, according to privacy organizations including the Electronic Privacy Information Center, Consumer Watchdog, Patient Privacy Rights, the Center for Digital Democracy, and the Privacy Rights Clearinghouse.

In a joint letter sent to Judge Edward J. Davila on Thursday, they urge him not to accept the proposed settlement. The main problem with the proposal is that it fails to require Google to change its business practices, they said.