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Judge Approves Controversial Settlement Over Objection of Consumer Privacy Organizations

A federal judge in California has approved a settlement agreement in a lawsuit against Google that will allow the company to continue to sell data about users' browsing history to advertisers. EPIC and several other consumer privacy organizations objected to the settlement, stating that it requires no change in Google's business practices and provides no benefit to those on whose behalf the case was brought. EPIC and the groups also recommended that the court adopt an objective basis for distributing cy pres funds, noting that the awards are often made for the benefit of the lawyers settling the case and not the class members. Class action settlements have come under increasing scrutiny in recent years, with courts increasingly concerned about collusion between attorneys and faux settlements that do not reflect the purpose of the initial lawsuit. In a case that reached the Supreme Court, Chief Justice Roberts said that courts will need to look more closely at these settlements to determine whether there are fair, whether organizations designated to receive funds reflect the interests of class members, and also the obligation of judges to carefully review these proposals. For more information, see EPIC: Search Engine Privacy and EPIC: Google Buzz.

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