Google nears $7 million settlement with U.S. states over Wifi incident: source

SAN FRANCISCO Fri Mar 8, 2013 5:04pm EST

An illustration picture shows a Google logo with two one Euro coins, taken in Munich January 15, 2013. REUTERS/Michael Dalder

An illustration picture shows a Google logo with two one Euro coins, taken in Munich January 15, 2013.

Credit: Reuters/Michael Dalder

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SAN FRANCISCO (Reuters) - Google Inc is nearing a $7 million settlement with some 30 U.S. states over a 2010 incident in which its Street View mapping cars collected passwords and other personal data from home wireless networks, according to a person familiar with the matter.

The announcement of the settlement is expected to be made by the states early next week, according to the person, though some of the final details of the deal were still being hammered out on Friday. Google has said the incident was a mistake.

A group of states, led by then-Connecticut Attorney General Richard Blumenthal, began the investigation into Google in 2010 after the company revealed that its fleet of Street View cars had inadvertently collected the data from unsecured wireless networks.

The $7 million payment will be shared among the many states that participated in the investigation.

Google declined to comment. A spokeswoman for the Connecticut Attorney General's office said that the investigation is "active and ongoing."

Google's Street View cars, which are well known for crisscrossing the globe and taking panoramic pictures of streets, accidentally collected data from unsecured wireless networks in more than 30 countries, Google disclosed in 2010. The company has said it "segregated" the data after it became aware it collected it.

Google was fined $25,000 by the FCC for impeding its investigation into the matter. But the FCC said it would not take any enforcement action against Google for the incidents, which Google has called a mistake. The agency said it wasn't clear that Google violated federal wiretap laws by collecting unencrypted personal data that people transmitted over their wireless home (WiFi) networks.

(Reporting By Alexei Oreskovic; Editing by Cynthia Osterman)

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Comments (5)
TOR01 wrote:
Hmmmmm, $7 million settlement based on an annual turnover of around $31 billion. Not sure this is much of a penalty the next time Google decides to illegally collect passwords and data from my home network. I am already moving my mail across to another service provider as a result of this case.

Mar 08, 2013 7:26pm EST  --  Report as abuse
MrSpeeb wrote:
Not much to split amongst 30 state. Even less once half (or more) goes the lawyers. I wonder if the states broke even?

Mar 08, 2013 8:12pm EST  --  Report as abuse
wthcares wrote:
Google… be afwaid, vewy, vewy afwaid!

Mar 08, 2013 9:42pm EST  --  Report as abuse
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