Google has been ordered by a U.S. federal jury to pay $425 million in compensatory damages in a privacy-related class action lawsuit. The case centered on allegations that the company continued to collect user data even after individuals had opted out of tracking through the “Web & App Activity” setting. The jury’s decision marks one of the most significant privacy verdicts against a major tech firm in recent years.

The lawsuit covered nearly 98 million users and more than 174 million devices. Plaintiffs argued that Google’s practices misled users, as they believed disabling the setting would halt data collection. However, evidence presented in court showed that Google continued to gather information via third-party apps such as Uber, Venmo, and Instagram. This data, according to the claimants, was used to enhance advertising revenues and analytics despite users’ explicit choices.

The jury found Google liable on two out of three alleged violations, though it stopped short of awarding punitive damages, citing a lack of malicious intent. The compensatory damages, however, reflect the scale of the class and the impact on millions of consumers who expected their privacy settings to be honored.

In response, Google stated that it plans to appeal the verdict, maintaining that its data practices are transparent and within the bounds of user agreements. The company emphasized that it provides multiple tools for individuals to control their data, though critics argue these tools remain confusing and ineffective.

This ruling underscores the growing scrutiny over how big technology companies handle personal data and the accountability they face when transparency is questioned. With regulators and courts increasingly prioritizing consumer rights, the case could set an influential precedent in shaping future privacy standards across the digital ecosystem.