Why the ACCC is taking on Google

The Australian Competition & Consumer Commission said Google had misled consumers about the extent of the personal information it collected.

The Australian Competition & Consumer Commission said Google had misled consumers about the extent of the personal information it collected when it changed data collecting practices in 2016. Picture: AFP

You’re in deep discussions with a friend about what new car you’re going to buy. You go home and look at some online news, and visit a car review website to read about the latest Volkswagen Golf. Soon, advertisements for new cars are following you everywhere. That’s an invasion of your privacy you haven’t properly consented to, according to Australia’s competition and consumer watchdog.

These actions may not directly involve your Google account or use of Google services, but somehow Google vacuums up information about you from all of these endeavours. You may visit independent sites and apps, but if they carry Google ads they collect your information and store it in a record about you.

Why is the ACCC taking legal action?

The Australian Competition & Consumer Commission said Google had misled consumers about the extent of the personal information it collected when it changed data collecting practices in 2016.

How did this problem arise?

Around 2008, Google acquired the company DoubleClick which tracks users on all types of websites and causes ads to be served matching their perceived interests. However, contractual agreements prevented DoubleClick from specifically storing personally identifiable information.

After acquiring DoubleClick, Google initially ensured that DoubleClick’s non-identifiable data was held separately from Google’s very specific user account information.

The ACCC said this changed in June 2016 when Google began merging DoubleClick with Google user account information, creating profiles more attractive to advertisers that could generate more Google revenue.

Was this merging of data unlawful?

The ACCC is taking action in the Federal Court because it believes Google misled consumers about the data collection change.

ACCC chair Rod Sims said the broader range of information that Google collected included potentially highly sensitive and private information about people’s activities on third party websites.

Did Google tell users about the change?

Consumers did receive a notification seeking their approval, but it seemed more a marketing pitch. It was headed “Some new features for your Google account”. It said: “We’ve introduced some optional features for your account, giving you more control over the data Google collects and how it’s used, while allowing Google to show you more relevant ads.

“More information will be available in your Google account making it easier for you to review and control. Google will use this information to make ads across the web more relevant for you.”

The ACCC said Google began to add personally identifiable information from DoubleClick, a company that it acquired once each user agreed to this.

How many Australian users are affected?

ACCC chairman Rod Sims said he thought more than one million Australian consumers were affected.

“There’s so many affected by this behaviour that you’d have to think that some millions would not have clicked ‘I agree’ had they known.”

He said an ACCC survey during the digital platforms inquiry found that more than 80 per cent did not want the data generated from their browsing and web crawling activities to be combined with personally identifiable information.

What legal action is the ACCC taking?

The ACCC has launched Federal Court proceedings against Google and Sims said it was seeking “penalties and deterrents”.

He said other competition and consumer regulatory bodies around the world were taking an interest in the ACCC’s action, which will help shape how overseas agencies act. He acknowledged a legal case could “take months”, given the reduced operation of the courts with COVID-19.

Can users withdraw their permission?

Sims said consumers can go into their Google accounts and select “disagree” to reverse their decision for data to be merged. “It is complicated to do but it can be done,” he says.

“I’m sure if one gets on the web, one can find out, or I’ll get my people to put it up on the web. If you did that, it wouldn’t affect your use of Google.”

Would a court penalty make a difference?

Mr Sims said these cases set boundaries around what can and can‘t be done and over time they shape the operating environment of the platforms.

“It’s basically establishing essentially the common law about what they can and can‘t do in various jurisdictions.”

He said if the ACCC won in court, Google would be more careful about getting consumers’ informed consent when it makes changes to its terms-and-conditions.

Is the ACCC conducting more investigations involving Google?

The ACCC last year announced legal action against Google over its collection and use of consumers’ location data. It’s also conducting an inquiry into ad tech and ad agency services. It’s following through investigating five to 10 issues involving digital platforms from its previous inquiry. It is also reviewing competitiveness around Google’s proposed acquisition of Fitbit.