Google’s landmark $1.38 billion settlement with the state of Texas, stemming from a 2022 lawsuit over unauthorized collection of user geolocation, incognito browsing data, and biometric identifiers, represents more than a headline-grabbing penalty. It is a clear signal that privacy enforcement in the United States is intensifying, decentralized, and rapidly expanding in sophistication. This case signals a critical transformation: privacy infractions that were once considered ambiguous or inconsequential are now attracting billion-dollar legal judgments. And these penalties are not limited to tech giants.
Meanwhile, state regulators like the California Privacy Protection Agency (CPPA) are escalating their enforcement priorities in 2025, targeting opaque privacy UX practices, AI-driven data use, and consumer rights violations. The message is unmistakable. Companies of all sizes and sectors must rethink their approach to privacy compliance. They need to operationalize trust, treat privacy as a product-level priority, and eliminate blind spots in real time.
Privaini is built to help you do just that. Our platform delivers actionable, AI-powered privacy risk intelligence across your business ecosystem, enabling you to identify compliance gaps before regulators or plaintiffs do. The $1.38B lesson from Google should not be ignored: transparency, automation, and external visibility are no longer optional. They are your new compliance foundation.
The Era of Regulatory Retaliation Has Arrived
The $1.38 billion Google-Texas settlement is not a standalone aberration; it is a critical inflection point in the evolution of privacy law enforcement in the United States. While historically, American regulators have lagged behind their European counterparts, the tide has shifted dramatically. State attorneys general, like Texas AG Ken Paxton, are increasingly asserting themselves as privacy enforcers, wielding aggressive litigation strategies that challenge the notion that "default data collection" is acceptable.
The Google case focused on three major violations: misleading consumers about the privacy of Incognito Mode, continuing to collect geolocation data even after users opted out, and capturing biometric identifiers such as face and voice data without meaningful consent. Each of these behaviors points to a systemic problem in how large digital platforms treat user privacy not as a fundamental right, but as a toggle buried in obscure menus.
Now, other state AGs are taking note. More lawsuits are on the way. Consumer privacy litigation is rising in volume and sophistication. And regulators are not waiting for federal action, they are acting with urgency at the state level. The message is clear: privacy is now a legal obligation, not just a PR talking point.
What Google Did and What Others Are Doing Too
Let’s break down the specific allegations that led to Google’s historic fine. First, Google allegedly misled users with its "Incognito Mode," implying that no data would be tracked when, in fact, Google continued to collect search activity and other behavioral signals. This mismatch between marketing language and actual technical behavior became a centerpiece of the case.
Second, even when users toggled off geolocation permissions, Google reportedly continued collecting location data through apps and background services. This practice undermines consumer autonomy and violates the principle of informed consent. Finally, Google was found to be harvesting biometric data, specifically facial geometry and voiceprints, through tools like Google Photos and Assistant, without appropriate user authorization or disclosure.
These practices are not unique to Google. Many organizations deploy cookie banners that obscure opt-out functionality, collect tracking data before consent is given, or embed third-party scripts that perform silent data collection. Privaini’s research shows that 98% of businesses fail cookie audits against regional standards like GDPR and CPRA. Without continuous monitoring, these violations go unnoticed until a regulator comes knocking.
Why Every Business Should Pay Attention
The privacy violations that triggered Texas’ lawsuit against Google are widespread across industries. Whether you’re in eCommerce, financial services, health tech, or media, it’s common to find businesses that:
• Use deceptive UX to nudge users into sharing more data
• Implement cookies or pixels before obtaining valid consent
• Fail to clearly disclose how AI tools process personal information
• Aggregate or share biometric data without explicit opt-in
If you think your company is too small or too niche to attract regulatory attention, think again. The CPPA, Texas AG, and other state authorities are ramping up enforcement and using the very same investigative strategies that brought Google to heel. They’re auditing from the outside in, assessing what any consumer or hacker could see. That means what you expose publicly, not just what you claim in policy PDFs, is what defines your compliance risk.
That’s why legacy privacy tools, static audits, internal questionnaires, and post-incident reviews are no longer enough. They create blind spots and delay insight. Modern privacy enforcement requires real-time visibility, dynamic testing, and external observability. That’s where Privaini comes in.
The CPPA's 2025 Crackdown Is Already Underway
The California Privacy Protection Agency (CPPA) is no longer just an enforcement agency; it has become one of the most forward-leaning privacy regulators in the world. In 2025, the CPPA launched new initiatives focused on identifying and penalizing manipulative user interface patterns, non-transparent AI disclosures, and mobile apps that fail to honor global privacy controls.
Their new enforcement strategy mimics the Texas approach: they don’t just rely on company disclosures. They test real-world user experiences, inspect cookie deployment patterns, evaluate consent flows, and map AI behavior across websites and apps. If your site loads a tracking pixel before the user opts in, the CPPA will flag it. If your AI model generates recommendations based on behavioral signals without disclosure, that’s a regulatory trigger.
This shift means your privacy compliance must be tested, not just documented. Regulators now see deceptive UX as equivalent to a data breach. So if your cookie banner is misleading, or your mobile app requests unnecessary permissions, you may already be out of compliance.
Privaini: Your Operational Shield Against Privacy Penalties
At Privaini, we believe the key to surviving this new regulatory landscape is continuous external validation. Our AI-powered platform scans your public digital footprint including websites, mobile apps, and third-party integrations to surface privacy risks before they become fines, lawsuits, or headlines.
We do not rely on internal self-assessments or delayed surveys. Instead, we provide continual monitoring from 100+ regulatory signals, security, and web data sources. Whether it's detecting unauthorized cookies, locating undisclosed AI behaviors, or identifying gaps in your privacy disclosures, Privaini transforms uncertainty into clarity.
Our platform generates a Privacy Score based on real-world signals. This gives your compliance, legal, and executive teams a quantifiable, external measure of your privacy posture across business units, markets, and vendors. You can benchmark against competitors, track changes over time, and get detailed remediation steps for every risk we identify.
With downloadable audit-ready reports, actionable dashboards, and automated monitoring, Privaini eliminates the guesswork from privacy compliance.
Don’t Let "Incognito" Mean Exposure
Google’s mistake was assuming that technical complexity would shield them from scrutiny. They suggested that private browsing was actually private, but buried contradictory disclosures in legalese. Regulators now see through that. They use real devices, incognito sessions, and third-party tools to test real behavior.
If your company offers any privacy mode, opt-out toggle, or tracking control, it must work precisely as described with no hidden exceptions, no fallback trackers, and no shadow collection.
Privaini’s tools are built to detect these discrepancies. Our Post-Login Analyzer reveals what tracking actually occurs after user authentication. Our Microsite Privacy Auditor scans all subdomains for non-compliant tracking behavior. Our Mobile App Privacy Monitor reveals over permissioned app functions. Together, they give you a comprehensive view of where your promises and practices diverge before regulators do.
The Cost of Non-Compliance Isn’t Just Legal, It’s Strategic
Google’s $1.38B payment is a number. But its real cost may be far higher when you consider:
• Erosion of consumer trust in Google’s privacy claims
• Increased litigation from class action firms
• Additional scrutiny from other state attorneys general
• Negative impact on product adoption, brand equity, and global regulatory perception
Smaller companies may not survive this kind of hit. In today’s privacy-first world, enforcement is no longer just about risk management. It’s about brand survival. It’s about enabling secure growth, market expansion, and customer retention. Companies that treat privacy as a check-the-box exercise will fall behind. Those who operationalize privacy intelligence, automate compliance, and validate transparency will lead.
Get Ahead of the Headlines With Privaini
Regulators are moving fast. Consumers are demanding more control. And AI is only accelerating the complexity of privacy governance. You need a solution that helps you:
• Understand what your digital ecosystem actually looks like to a regulator
• See risks in real time, across cookies and mobile apps
• Generate defensible reports for auditors, insurers, and your board
• Identify high-risk vendors or business units before they become legal liabilities
• Align with 100+ global privacy laws from CCPA to GDPR to LATAM and APAC regulations
Privaini helps you do all of this, continuously, without internal overhead. No agents. No questionnaires. No delay. Just real privacy intelligence, visible when you need it, with actionable steps that make compliance part of your everyday operations.
Google’s lesson is simple. Your privacy claims must match your privacy actions. And if they don’t, regulators will find out, with or without your help.
Let’s make sure you’re never caught off guard.
