Google to pay $8.5m over Google Buzz

Search engine firm and online giant Google has agreed to pay $8.5 million after compromising the security and privacy of its Gmail users when it released Google Buzz, a "Gmail bolt-on that turned the email service into a Tweetbookish social networking tool," according to The Register.

The suit was raised after Google Buzz was rolled out prior to rigorous testing, and consequently led to private information like frequent Gmail contacts becoming available to the public, irking users. Although there was an option to hide the lists from the public view, users complained that the checkbox which would make this possible was difficult to locate and apply.

Google responded by making the checkbox more accessible, and altered the way it handles user contacts, announcing that it is simplifying its privacy policies to make them "more transparent and understandable".

Robin Fry, media law partner at Beachcroft LLP, claimed the payout is a success for privacy campaigners, although he was quick to downplay the total payout to individuals. "In truth the amount payable to each individual shows that the courts don't really place much value on privacy concerns. There are data protection laws but few countries have any strong sanctions," Fry said.

"The commercial message for Google is to keep on innovating, and leveraging the data it collects - but to be ready to pay the occasional fine and have a good PR firm, if anyone squeals."

In settling the consolidated case, Google will create an $8.5 million fund that will be used to distribute awards to organizations focused on internet privacy or privacy education.

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