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Arizona reaches $85 million settlement in location tracking suit

Privacy, Cyber Risk & Data Security State Issues Arizona Settlement State Attorney General

Privacy, Cyber Risk & Data Security

On October 4, the Arizona attorney general announced an $85 million settlement with an internet technology company to resolve allegations that it collected individuals’ location data for targeted advertising without users’ knowledge or consent or after users opted out of the feature through the platform’s settings. The AG initiated an investigation in 2018 into the company’s practices after sources claimed that the platform surreptitiously collected and sold location information through other settings even though users believed disabling the “Location History” setting would ensure this would not occur. The AG sued the company in 2020, claiming violations of the Arizona Consumer Fraud Act. Among other things, the AG alleged the company’s disclosures misled users into believing these other settings had nothing to do with tracking user location, and that the company used “deceptive and unfair practices to collect as much user information as possible” and made it difficult for users to understand what was being done with their data or opt out of data sharing. Without admitting any wrongdoing, the company agreed to the terms of the settlement agreement and will pay Arizona $85 million, of which the majority will go toward “education, broadband, and [i]nternet privacy efforts and purposes.”