FTC Announces Google’s Massive Fine For “Safari-gate” Settlement

    August 9, 2012
    Chris Crum
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Last month, it was reported that Google was about to pay a $22.5 million penalty, courtesy of the U.S. Federal Trade Commission, for privacy issues in what became known as “Safari-gate”. Today, that settlement has been officially confirmed, as the FTC has put out a statement discussing it.

The fine is the largest that any single company has ever had to pay as the result of violation of a commission order.

“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.”

The FTC has also ordered Google to disable all tracking cookies it had said it wouldn’t place on consumers’ computers.

In its initial complaint, the FTC charged that Google had placed a certain advertising cookie on Safari users’ devices, who visited sites in Google’s DoubleClick ad network, though Google had reportedly told users they would automatically be opted out of the tracking, as a result of Safari’s default settings.

The FTC found that Google misrepresented its privacy assurances, and placed the cookie on the devices anyway. The FTC said, “Google exploited an exception to the browser’s default setting to place a temporary cookie from the DoubleClick domain. Because of the particular operation of the Safari browser, that initial temporary cookie opened the door to all cookies from the DoubleClick domain, including the Google advertising tracking cookie that Google had represented would be blocked from Safari browsers.”

The FTC also found that Google had violated a previous settlement it reached with the agency back in 2011, related to Google Buzz.

  • tom gonz

    That’s all! They prob made 1 billion from it so they laughing at FTC. It should be a fine that is equal to what they made by their crime.

    • http://www.webpronews.com/author/chris-crum Chris Crum

      Definitely not much compared to the revenue Google generates, but still the largest fine for a single company from the FTC.

      • http://SelfStorage.TheOkayNetwork.com Steve G

        Based on Google’s practices time and time again, I’m sure they’ll eventually beat their own record they just set. It’s not a record for the biggest fine levied against a company tho. If you remember they were fined half a billion dollars for violating federal pharmaceutical advertising laws.

        Honestly Google seems to have this “It’s not illegal unless you get caught” kind of way of doing things. Even then Google doesn’t seem to care much as the fines are way less than the profits they made off the illegal activity.

        • http://www.webpronews.com/author/chris-crum Chris Crum

          Yeah, the DoJ’s fine was significantly larger.

          • http://SelfStorage.TheOkayNetwork.com Steve G

            Exactly! But we all know if given enough time, Google will find a way to beat that record.

  • Bud s

    Anyone notice how Google did this on Safari and not Chrome? So Google does the offending thing and at the end of the day they win because their illegal actions give the competition a black eye. So much for not being evil.

  • http://www.greyolltwit.com/ Grey Olltwit

    Just loose change to Google

  • http://www.promotionismybusiness.com Blurt Inc.

    Obviously Google this is concerned about $22.5 million and will but seems to me that the bad press associated with Google violating their “privacy promises”. There should be bigger news than it is but… there you go.