FOLLOW US

Google has agreed to a $135 million settlement and will require explicit consent from new Android users for certain data practices, resolving a proposed class action accusing the tech giant of transferring cellular data without users’ knowledge or permission, according to filings in federal court in California.

The settlement covers more than 100 million Americans who used Android smartphones with cellular data plans from Nov. 12, 2017, through the final judgment, though California-based users are excluded due to a separate state court case. The plaintiffs, Joseph Taylor, Mick Cleary, and Jennifer Nelson, are seeking preliminary approval for the settlement, which would create a non-reversionary fund to compensate class members. Payments would be distributed pro rata, with a cap of $100 per person after attorney fees, costs, incentive awards, and administrative expenses are deducted.

The case centers on claims that Android devices sent information to Google even when idle, with all apps closed, and without users’ consent. Plaintiffs argue that the operating system exploited users’ cellular data to collect information for Google’s advertising purposes, a practice described as “passive” data transfer.

Beyond monetary compensation, the settlement requires Google to implement “significant injunctive relief.” New Android users will receive clearer disclosures about background data transfers, including language in Google Play terms of service explaining that such transfers can occur even when devices are not connected to Wi-Fi. Users must give explicit consent through an “accept” button in the device setup process before Google can use cellular data for these activities. Additionally, the settlement calls for Google to modify the “allow background data usage” toggle, ensuring it cannot mislead users into thinking it prevents data transfers when it does not.

Plaintiffs argue that these changes represent a major victory for transparency, estimating that the injunctive relief could prevent the unauthorized use of approximately $300 million worth of cellular data annually, or $600 million over the expected two-year term of the new practices.

The legal dispute dates back to November 2020, when the class action was first filed, alleging claims for conversion and quantum meruit against Google. Magistrate Judge Virginia K. DeMarchi previously dismissed aspects of the case in 2022, ruling that contractual rights to cellular data did not constitute personal property for conversion claims. However, the Ninth Circuit revived the claims in 2024, sending the case back for discovery.

Google expressed relief at reaching a resolution, stating that the settlement clarifies industry-standard practices and provides additional transparency for users. “We’re providing more information to ensure people understand how our services operate,” spokesperson José Castañeda said.

A preliminary approval hearing is scheduled for Feb. 17. Plaintiffs’ counsel emphasized that the settlement avoids the uncertainties of continued litigation while offering substantial monetary and non-monetary relief to Android users.

Plaintiffs are represented by teams from McManis Faulkner, Bartlit Beck LLP, and Korein Tillery. Google is represented by Cooley LLP. The case is Taylor et al. v. Google LLC, case number 5:20-cv-07956, in the U.S. District Court for the Northern District of California.