Newsletters
Customer Relationship Management News NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home CRM Systems Customer Service Contact Centers Business Intelligence More Topics...
Druva Resource Center
24/7/365 Network Uptime!
Average Rating:
Rate this article:  
Judge OKs $22.5 Million FTC Fine on Google
Judge OKs $22.5 Million FTC Fine on Google

By Adam Dickter
November 20, 2012 11:14AM

Bookmark and Share
"I think this is too small to change behavior," said analyst Rob Enderle of the FTC's $22.5 million privacy fine against Google. "Amounts like this are easily fit in the cost of doing business for a company of this size. It likely needs to be two magnitudes bigger to convince the company to change behavior." A judge has OK'd the fine against Google.
 

Related Topics

Google
Privacy
Safari
Cookies
Apple



A federal judge has agreed to a $22.5 million settlement in the Federal Trade Commission's case against Google for tinkering with Apple's Safari browser to make it easier to track users' activity via mobile ads.

The fine is the toughest ever leveled by the government watchdog agency, but not the first slap against the Mountain View, Calif-based technology giant.

The two sides agreed to the settlement in August, after an investigation into code that allowed Google to bypass Apple's privacy settings on its browser for the iPhone and iPad. This was accomplished by adding +1 Google -- recommendations to ads produced by Google's DoubleClick ad agency, which cleverly allowed Safari to accept cookies, snippets of data. The code was discovered by a Stanford University researcher who reported his findings to The Wall Street Journal.

'News to Us'

Google said it didn't know its code was having that effect on computers and immediately discontinued the code after the Journal's report.

Members of Congress demanded an investigation, and the FTC said Google had violated an October 2011 settlement in which it promised to behave itself on privacy issues. The tracking code was a misrepresentation to consumers regarding Google's privacy policies, the FTC said.

""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 fine is a huge jump from the $25,000 fine leveled by the FTC just last April because of personal data obtained by the company's Street View cars, which capture images for Google Maps, obtained from Wi-Fi routers.

But some say the fine is still too paltry for Google to feel it. Google earns $22.5 million about every four hours, according to an estimate by the group Consumer Watchdog.

Europe Is Tougher

"I think this is too small to change behavior," said consultant Rob Enderle of the Enderle Group. "Amounts like this are easily fit in the cost of doing business for a company of this size. It likely needs to be two magnitudes bigger to convince the company to change behavior. Fines this low are little more than a small annoyance."

Enderle noted that it took a fine of $1.44 billion against software giant Microsoft leveled by the European Union before the company changed its licensing practices.

"The EU has been far more effective than the U.S. of late addressing bad corporate behavior," Enderle told us.

In addition to the fine, the order also requires Google to disable all the tracking cookies it had said it would not place on consumers' computers.
 

Tell Us What You Think
Comment:

Name:



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Druva Resource Center
1.   NIST Issues Draft Guide for IT Security
2.   Druva Debuts eDiscovery Solution
3.   Are Your Enterprise Assets at Risk?
4.   Human Element Overlooked in Security
5.   Druva inSync Earns Highest Marks


advertisement


advertisement
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Canadian Government Charges China With Cyberattack
The government of Canada is not happy with China. Canadian officials have accused "a highly sophisticated Chinese state-sponsored actor" of launching a cyberattack on its National Research Council.
 
Researchers Working To Fix Tor Security Exploit
Developers for the Tor privacy browser are scrambling to fix a bug revealed Monday that researchers say could allow hackers, or government surveillance agencies, to track users online.
 
Wall Street Journal Hacked Again
Hacked again. That’s the story at the Wall Street Journal this week as the newspaper reports that the computer systems housing some of its news graphics were breached. Customers not affected -- yet.
 

Enterprise Hardware Spotlight
Apple Updates MacBook Pros, Cuts Prices Up to $100
The popular MacBook Pro laptop line just got an update and a price cut of as much as $100. The MacBook Pro with Retina display now includes faster processors and double the memory.
 
Dell, BlackBerry Not Sweating Apple-IBM Alliance
IBM's recent move to partner with Apple to sell iPhones and iPads loaded with corporate applications has excited investors in both companies, but two rivals say they are unperturbed for now.
 
Watson Gets His First Customer Service Gig
Since appearing on Jeopardy, IBM's Watson supercomputer has been making a living using his super-intelligent knowledge base for business verticals. Now, Watson's been hired for his first customer service job.
 

Mobile Technology Spotlight
Virgin Mobile Offers Custom Smartphone Plans
As the wireless carrier wars continue heating up, Virgin Mobile just threw the customization coal onto the fire. The firm has debuted a no-annual-contract plan with rates based on individual use.
 
Collaboration Provider Asana Revamps Mobile App
Asana, a collaboration software provider started by a Facebook founder, is now out with a rebuilt native iOS mobile app. It replaces one that even the company admits was not up to par.
 
Android 'Fake ID' Puts Millions of Users at Risk
Having this fake ID is nothing to brag about, even if you are a minor. The “Fake ID” Android flaw drops malware into smartphone apps. It can steal credit card data and even take over your device.
 

Navigation
CRM Daily
Home/Top News | CRM Systems | Customer Service | Contact Centers | Business Intelligence | Sales & Marketing | Customer Data | CRM Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.