Google today agreed to pay $22.5 million to settle a Federal
Trade Commission (FTC) charge that it bypassed Safari’s privacy settings
to serve targeted ads to consumers. Google placed these cookies on
Safari users’ computers, despite the fact that, as the FTC notes,
“Google had previously told these users they would automatically be
opted out of such tracking, as a result of the default settings of the
Safari browser used in Macs, iPhones and iPads.” This, according to the
FTC, was in direct violation of the earlier privacy settlement between
Google and the FTC.
The FTC’s charge focused on the fact that Google exploited a loophole
in Safari to place cookies on its users’ computers even though Safari,
by default, blocks cookies from third-party sites. As the WSJ reported earlier this year,
Safari makes an exception for cookies from sites that users interacted
with before by, for example, filling out a form. To place its ad
tracking cookies, Google tricked Safari into believing that users were
submitting a form to Google and the browser would then allow Google to
install its temporary ad tracking cookies.
The existence of today’s fine was
first reported
last week, but wasn’t official until today. Given that this is a
settlement, it’s important to note that today’s “consent order is for
settlement purposes only and does not constitute an admission by the
defendant that the law has been violated.”
Despite these legal details, the FTC is clearly looking at this
settlement as a success. “The record setting penalty in this matter
sends a clear message to all companies under an FTC privacy order,” said
Jon Leibowitz, Chairman of the FTC. “No 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.” One could easily argue,
though, that paying a $22.5 million fee isn’t exactly a problem for
Google, which had an operating income of over $3 billion last quarter.
Google’s Response
We asked Google for a statement regarding today’s announcement. Here is Google’s response:
We set the highest standards of privacy and security for
our users. The FTC is focused on a 2009 help center page published more
than two years before our consent decree, and a year before Apple
changed its cookie-handling policy. We have now changed that page and
taken steps to remove the ad cookies, which collected no personal
information, from Apple’s browsers.
Google has until February 15, 2014 to expire all of the cookies involved in today’s settlement.