Google resolves $68 million Google Assistant privacy lawsuit

• The lawsuit claimed Google Assistant illegally recorded conversations after mistakenly perceiving words as 'hot words' like 'Hey Google' or 'Okay Google', then used recordings for ad targeting
• Settlement covers Google device owners or those affected by false activations since May 18, 2016, with plaintiff lawyers potentially receiving up to $22.7 million (one-third) in legal fees
• Apple reached a similar $95 million settlement with smartphone users over Siri privacy issues in December 2024

Google Settles $68 Million Privacy Lawsuit Over Voice Assistant

Google, a unit of Alphabet, has agreed to pay $68 million to resolve a class action lawsuit alleging its voice-activated Google Assistant violated user privacy by inappropriately recording private conversations. The preliminary settlement was filed January 26 in San Jose federal court and awaits approval from U.S. District Judge Beth Labson Freeman.

Key Allegations:

Smartphone users claimed Google illegally recorded and disseminated private conversations triggered by "false accepts"—instances where Google Assistant misinterpreted words as activation phrases like "Hey Google" or "Okay Google." Plaintiffs alleged these recordings were used to deliver targeted advertising.

Settlement Details:

• Amount: $68 million total, with lawyers potentially seeking up to one-third ($22.7 million) in legal fees
• Coverage: Applies to individuals who purchased Google devices or experienced false accepts since May 18, 2016
• Company stance: Google denied wrongdoing but settled to avoid litigation risks and costs

Market Context:

This settlement follows a similar privacy case involving Apple's Siri, which resulted in a $95 million settlement in December 2024. The parallel cases highlight growing regulatory and legal scrutiny of voice-activated assistant technology across major tech companies.

Implications:

The settlement underscores increasing privacy concerns surrounding smart device technology and voice assistants. For Alphabet investors, the $68 million represents a relatively modest financial impact but signals potential ongoing legal and compliance costs related to privacy features. The case may prompt enhanced privacy controls and transparency measures for voice-activated products industry-wide.