Google has agreed to pay $8 million to settle claims that it ran deceptive advertising campaigns in Texas, resolving enforcement action brought by Texas Attorney General Ken Paxton’s office over alleged false and misleading promotional practices involving the company’s products. Reuters
The settlement, announced in May 2023 and finalized as part of the state’s broader consumer protection efforts, underscores ongoing scrutiny of Big Tech’s advertising standards and compliance with state consumer protection laws — even as Google faces much larger lawsuits and settlements on privacy and antitrust fronts. Reuters
Allegations of Misleading Marketing
According to the Texas attorney general’s office, the case focused on advertising for Google’s Pixel 4 smartphone. State prosecutors alleged that Google paid radio personalities to provide detailed testimonials about their experience with the phone without actually providing those individuals with a device in advance, raising concerns that the promoted endorsements were not genuine and therefore constituted deceptive advertising under Texas law. Reuters
“If Google is going to advertise in Texas, their statements better be true,” Attorney General Paxton said at the time. “In this case, the company made statements that were blatantly false, and our settlement holds Google accountable for lying to Texans for financial gain.” Reuters
Google acknowledged the settlement but did not admit wrongdoing. A company spokesperson reiterated that Google takes compliance with advertising laws seriously and welcomed the resolution of the matter. Reuters
Context: Small Settlement Amid Broader Legal Battles
While $8 million may seem modest for a multinational tech giant, the settlement is part of a broader pattern of legal actions by state attorneys general targeting Google’s business practices. In recent years, the company has faced significant penalties in much larger cases, including a nearly $1.4 billion settlement with Texas over alleged privacy violations related to location tracking, incognito mode and biometric data collection. PPC Land
Legal and consumer rights analysts say the relatively small figure reflects the narrow scope of the deceptive ads case, which focused on compliance with state advertising law rather than systemic privacy or antitrust issues. Still, the case serves as a reminder that even the world’s largest technology companies can be held financially responsible for misleading marketing practices at the state level. Reuters
State Enforcement and Consumer Protection
Texas, like several other states, has ramped up enforcement actions aimed at increasing accountability for major corporations’ advertising and data handling practices. Attorney Generals across the U.S. have pursued similar actions under state consumer protection statutes, citing concerns that deceptive or opaque advertising can harm ordinary consumers and distort competitive markets. Reuters
Consumer advocates have generally welcomed the enforcement action, but some critics argue that financial penalties in such cases are too small to deter wrongful conduct by companies with billions in revenue. They say that more substantial fines or changes to corporate practices might produce stronger incentives for compliance. Reddit
What Happens Next?
Under the terms of the settlement, Google will pay the agreed sum to the State of Texas. The attorney general’s office has broad discretion in how such funds are used, which may include bolstering consumer protection programs, funding further enforcement, or supporting public education campaigns. Reuters
Google said it continues to refine its advertising policies and internal review processes to ensure regulatory compliance across all U.S. jurisdictions.
As state and federal regulators continue to scrutinize tech giants’ marketing and data practices, the $8 million settlement illustrates that no company is immune from legal challenges over how it represents its products to consumers — even in a highly competitive digital marketplace. Reuters
For continued coverage of tech regulation, consumer protection and corporate accountability, stay with More24News.
