COPY MAY 2 7 2020 I 2 3 4 5 6 7 8 9 10 II 12 13 CleRK Of /HE SIJPERIOH CO Rr R. MERINO DEPUTY ClERK MARK BRNOVICH ATTORNEY GENERAL Firm State Bar No. 14000 Joseph A. Kanefield (State Bar No. 15838) Brunn W. Roysden III (State BarNo. 28698) Oramel H. Skinner (State Bar No. 032891) MichaelS. Catlett (State Bar No. 025238) Christopher Sloot (State BarNo. 034196) Assistant Attorneys General 2005 N. Central Ave. Phoenix, Arizona 85004 Telephone: (602) 542-8958 Beau.Roysden@azag.gov O.H.Skinner@azag.gov Michaei.Catlett@azag.gov Christopher.Sioot@azag.gov ACL@azag.gov [Additional Counsel on Signature Page] Attorneys for Plaintiff State ofArizona ex rei. Mark Brnovich, Attorney General 14 THE SUPERIOR COURT OF THE STATE OF ARIZONA 15 IN AND FOR THE COUNTY OF MARlCOPA 16 17 18 STATE OF ARIZONA, ex rei. MARK BRNOVICH, Attorney General, 19 20 21 22 23 Plaintiff, cv 2 0 2 0- 0 0 6 2 '\ 9 Case No: COMPLAINT FOR INJUNCTIVE AND OTHER RELIEF v. Assigned to the Ron: _ _ _ _ _ _ __ GOOGLE LLC, a Delaware limited liability company, Defendant. 24 (Non-classified; Consumer Fraud) REQUEST ASSIGNMENT TO COMPLEX COURT ) JURY TRIAL DEMANDED )_ 25 26 27 28 COMPLAINT FOR INJUNCTIVE AND OTiffiR RELIEF 1 TABLE OF CONTENTS 2 Pag 3 I. INTRODUCTION .......................................................................................................................... 1 4 II. PARTIES, JURISDICTION, AND VENUE .................................................................................. 5 5 A. Plaintiff ............................................................................................................................... 5 6 B. Defendant ............................................................................................................................ 5 7 C. Jurisdiction and Venue ........................................................................................................ 5 8 9 Ill. FACTUAL ALLEGATIONS ......................................................................................................... 6 A. 10 Goog1e Engages in Acts and Practices In Connection With the Sale and Advertisement of Merchandise In And Affecting The State of Arizona ............................ 6 11 B. Overview ofGoogle's Many Location-Related Settings .................................................. 10 12 C. Google Admits Its Location-Related Settings Are a • • • • • • • • • 13 - - ............................................................................................................................. 12 14 l. 15 Web & App Activity Settings ............................................................................... 14 16 2. 17 18 Google Misleads and Deceives Users Through Its Location History and WiFi Scanning and WiFi Connectivity Settings ................................................... 19 D. Google Uses Its Users' Locations Even When Users Turn Off the Relevant 19 Permissions ....................................................................................................................... 21 20 1. 21 ---·······································································································21 22 2. 23 ---······························································································· .. ····· .... 24 24 3. 25 - - - - - - - ............................................................................ 26 26 E. Google Automatically Changes the State of Permissions Without NotifYing Users ........ 27 27 F. Google Changes the Android User Interface to Increase Location 28 at the Expense of User Choice and Consent ..................................................................... 29 -iCOMPLAINT FOR INJUNCTIVE AND OTHER RELIEF 1 TABLE OF CONTENTS (cont.) 2 3 G. 4 Information ....................................................................................................................... 33 H. 5 6 lV. 7 8 Google Misleads and Deceives Users Regarding Its Deletion of Their Location Google Has Engaged In Willful Violations Of The Arizona Consumer Fraud Act ......... 34 ARIZONA'S INVESTIGATION INTO GOOGLE'S UNFAIR AND DECEPTIVE ACTS AND PRACTICES ....................................................................................................................... 36 v. CLAIM FOR RELIEF .................................................................................................................. 41 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -ii- COMPLAINT FOR INnJNCTIVE AND OTHER RELIEF 1 2 Plaintiff State of Arizona ex rei. Mark Brnovich, Attorney General, for its Complaint against Defendant Google LLC ("Google"), alleges as follows: 3 4 I. 1. INTRODUCTION This case concerns Google's widespread and systemic nse of deceptive and nnfair 5 business practices to obtain information about the location of its users, including its users in Arizona, 6 which Google then exploits to power its lucrative advertising business. 7 2. The average consumer likely associates Google with its popular products and services 8 including Google Search, Google Maps, the Google Chrome browser, Y ouTube, and Android, but these 9 products and services are not Google's principal business. 10 11 12 13 14 3. From a revenue perspective, Google's principal business is selling advertisements and ctisplaying them to the users of Google's products and services. 4. This reality is reflected by Google's financials. In 2019, for example, over 80% of Google's massive revenues-$135 billion out of$161 billion total-were generated by advertising. 5. Google's advertising revenues are driven by the company's collection of detailed 15 information about its users, including information about where those users are located. Location 16 information allows Google to enable advertisers to target users in a specific geographic location, and it 17 also allows Google to validate the effectiveness of ads by reporting to advertisers how often online ad 18 clicks are converted into real-world store visits. 19 6. Given the lucrative nature of Google's advertising business, which depends on having 20 detailed location information about its users, Google goes to great lengths to collect its users' location 21 information. Indeed, according to Harvard Professor Shoshana Zuboff, "Google's proprietary methods 22 enable it to surveil, capture, expand, constrnct and claim behavioral" data, "including data that users 23 intentionally choose not to share." See SHOSHANA ZUBOFF, THE AGE OF SURVEILLANCE CAPITALISM 80 24 (20 19). In this regard, individual users of Google products and services are the targets of a sweeping 25 surveillance apparatus designed to collect their behavioral data en masse, including data pertaining to 26 user location. !d. at 8-10. 27 28 -I- COMPLAINT FOR INJUNCTIVE AND OTHER RELIEF I 7. The tactics Google deploys to surveil its users' locations-including users in Arizona- 2 include willfully deceptive and unfair acts and practices within the meaning of the Arizona Consumer 3 Fraud Act. 4 8. One aspect of Google's deceptive conduct came into public view with the August 2018 5 publication of an Associated Press article entitled, "Google tracks your movements, like it or not." The 6 article discusses Google's Location History service, which enables users to view where they have been. 7 Google provided users the ability to disable Location History. At the same time, Google told users that 8 "with Location History off, the places you go are no longer stored." But the AP atticle revealed that this 9 statement was blatantly false-even with Location History off, Google would surreptitiously collect 10 location information through other settings such as Web & App Activity and use that information to sell 11 ads. 12 9. Arizona's investigation has revealed that Google's deceptive and unfair conduct extends 13 well beyond its false Location History disclosure. Indeed, such acts and practices pervade Google's 14 seemingly relentless drive to (i) collect as much user location information as possible and (ii) make it 15 exceedingly hard for users to understand what is going on with their location information, let alone opt- 16 out of this morass. This is demonstrated by the following examples: 17 a. As described in the AP article, with Location History off, Google continues to collect 18 location information through Web & App Activity-a title that reveals nothing about 19 the setting's connection to harvesting location data. Through Web & App Activity, 20 Google logs information relating to a user's activity on Google websites and apps, 21 such as conducting a search on Google Search. A critical component of this 22 information from Google's perspective is a user's location. Nevettheless, until early- 23 to mid-2018, Google's disclosures during account creation made no mention of the 24 fact that location information was collected through Web & App Activity, which is 25 defaulted to "on." And even today the title itself is misleading by failing to disclose 26 any connection to location. 27 28 b. Devices running the Android operating system have a device-level location setting. Google tells users that "the types of data we collect depend in part on your device and -2- COMPLAINT FOR INTIJNCTIVE AND OTHER RELIEF 1 account settings. For example, you can turn your Android device's location on or off 2 using the device's settings app." A reasonable conclusion from this disclosure is that 3 "off means off'-i.e., that Google simply will not collect and exploit user location 4 information when a device's location setting is turned off. • • • • • • - 5 6 7 8 9 10 11 c. 12 - - - - · There are two relevant settings-WiFi scanning and WiFi connectivity. 13 Only the WiFi scanning setting is presented within location settings, which would 14 lead a reasonable user to believe that turning it off would result in Go ogle no longer 15 discerning a user's location through WiFi scans. • • • • • • • • • • • • • • 16 17 18 d. In recent versions of Android, individual Go ogle apps ask for the user's permission to 19 use their location data. A reasonable inference is that, if the user denies this app-level 20 permission to an app, that app will not be able to use the user's location. • • • • 21 22 23 e. The • • • • • • • deception also manifests in ads personalization. As explained 24 above, Google serves personalized ads to its users based in part on information 25 Google has about a user's location. Google purports, however, to allow users to opt 26 out of ads personalization by turning off a setting of that name ("GAP"). • • • • 27 28 -3- COMPLAINT FOR INJUNCTIVE AND OTI!ER RELIEF 1 11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111-. 2 has a second ads service (''DoubleClick") through which it serves ads on third-party 3 websites. The setting that controls DoubleClick's service oflocation-based ads is in a 4 completely separate user interface from the GAP setting. Moreover, Google 11111111111111111111111111111111111111111111111111111111111111111111111111111111•) 5 6 7 8 9 10 11 12 f. Users are more likely to disable their device's location setting if they are readily offeredsuchasetting.llllllllllllllllllllllllllllllllllllllllllll 13 14 15 16 17 18 19 20 10. Users, including in Arizona, have come to rely on Google's products and services on a 21 daily basis. At the same time, tlu·ough these deceptive and unfair acts and practices, Google makes it 22 impractical if not impossible for users to meaningfully opt-out of Google's collection of location 23 information, should the users seek to do so. 24 11. Google has engaged in these deceptive and unfair acts and practices with the purpose of 25 enhancing its ability to collect and profit from user location information. And profited it has, to the tnne 26 of over $134 billion in advertising revenue in 2019 alone. On information and belief, hundreds of 27 millions of dollars of these advertising revenues were generated from ads presented to millions of users 28 in the State of Arizona. -4- COMPLAINT FOR INJUNCTIVE AND OTHER RELIEF I 12. Arizona brings this action to put a stop to Google's deceptive and unfair acts and 2 practices; force Google to disgorge all profits, gains, gross receipts, and other benefits obtained for the 3 period of time when it engaged in any unlawful practice; recover restitution for Arizona consumers; and 4 impose civil penalties for Google's willful violations of the Arizona Consumer Fraud Act. 5 6 II. A. 7 PARTIES, JURISDICTION, AND VENUE Plaintiff 13. Plaintiff is the State of Arizona, ex rei. Mark Brnovich, Attorney General ("Arizona"). 8 The Attorney General is authorized to bring this action in the name of the State under A.R.S. § 44-1521 9 et seq. 10 B. 11 12 Defendant 14. Google LLC is a Delaware limited liability company with its principal place of business at 1600 Amphitheatre Parkway, Mountain View, California. 13 15. Google is a technology company that specializes in Internet-related products and 14 services, which include online advertising technologies, search, cloud computing, and other software 15 and hardware. 16 17 16. and on infmmation and belief the number of Google's Arizona users is in the millions. 18 19 Google markets and advertises its products and services throughout the United States, 17. Google touts that "[i]n 2019, [it] helped provide $6.22 billion of economic activity for 28,900 Arizona businesses, publishers, nonprofits, creators, and developers." 1 20 18. At all relevant times Google acted with the knowledge and understanding that the 21 activities described in this Complaint would affect users ofGoogle's products and services throughout 22 the United States, including in the State of Arizona. 23 c. 24 25 Jurisdiction and Venne 19. This Court has subject-matter jurisdiction over this matter, including under Article VI, Section 14 of the Arizona Constitution. 26 27 28 1 https://economicimpact.google.com/state/az/. -5- COMPLAINT FOR !NmNCTIVE AND OTHER RELIEF 1 2 20. liability pursuant to the Arizona Consumer Fraud Act, A.R.S. § 44-1521, et seq. 3 21. Venue is proper in Maricopa County pursuant to A.R.S. § 12-401. III. 4 5 This Court may enter appropriate orders both prior to and following a determination of A. FACTUAL ALLEGATIONS Google Engages in Acts and Practices In Connection With the Sale and Advertisement of 6 Merchandise In And Affecting The State of Arizona 7 22. 8 Google's deceptive and unfair acts and practices alleged herein are in connection with the sale or advertisement of merchandise for several reasons, including the following: 9 a. Google sells its own Android devices to consumers in Arizona, and those devices 10 both run Google's proprietary forks of the Android operating system and come II preloaded with several Google apps. As part of activating and setting up their phones 12 after purchasing them for consideration, consumers purportedly "consent" to the 13 settings described herein that result in Google's collection of location data. Google's 14 acts, practices, representations, and omissions regarding those settings, including 15 during setup, are thus in connection with the sale of Google's Android phones. 16 b. Google creates both software that is part of the Android operating system (i.e., 17 proprietary forks) and also Google apps that it causes to be included on Android 18 devices sold by other manufacturers to consumers in Arizona. As part of activating 19 and setting up those devices after purchasing them for consideration, consumers 20 purportedly "consent" to the settings described herein and Google's collection of 21 location data. Google's acts, practices, representations, and omissions regarding those 22 settings are thus in connection with the sale of certain third-patty Android phones. 23 c. Go ogle advettises the devices and software described in (a) and (b), supra, to 24 consumers. Google also advertises software that 1uns on other operating systems 25 (e.g., iOS). Google's acts, practices, representations, and omissions when advertising 26 devices and software are thus in connection with the adveliisement of merchandise. 27 28 d. Google sells ad placements (i.e., "merchandise") to third patties for consideration (Google's principal business), which advertisements are powered by the fruits of the -6- COMPLAINT FOR INJUNCTIVE AND OTHER RELIEF 1 deceptive and unfair acts and practices alleged herein relating to collection of user 2 location data. Google's acts, practices, representations, and omissions when selling ad 3 placements to purchasers of such ad placements are thus in connection with the sale 4 of merchandise. 5 e. Google markets (i.e., advetiises) its ad business to potential and actual buyers of its 6 advertisements. Google's acts, practices, representations, and omissions when 7 marketing its ad business to potential buyers of ads are thus in connection with the 8 advertisement of merchandise. 9 f. Google's unfair and deceptive acts and practices lead to targeted advertisements to 10 Arizona consumers based on user location data, and Google also tracks "conversions" 11 of such ads to physical store visits. Google's acts, practices, representations, and 12 omissions when serving advertisements to consumers on behalf of the third parties 13 who have purchased such ads, and tracking conversions from such ads, are thus in 14 connection with the advertisement and sale of merchandise by those third parties. 15 16 17 23. Google's own "device" offerings include smmtphones in the Google Pixel and Google Nexus f=ilies of phones. For example, Google has sold and/or adve1tised the following devices: • Google Pixel family 18 0 Pixel C (released 2015) 19 0 Pixelbook (released 20 17) 20 0 Pixel Slate (released 20 18) 21 0 Pixel! (released 2016) 22 0 Pixel 2 (released 20 17) 23 0 Pixel3 (released 2018) 24 0 Pixel4 (released 2019) 25 • Google Nexus family 26 0 Nexus One (released January2010) 27 0 Nexus S (released December 2010) 28 0 Galaxy Nexus (released November 2011) -7- COMPLAINT FOR INJUNCTIVE AND OTHER RELIEF I 0 Nexus 4 (released November 2012) 2 0 Nexus 5 (released November 20 13) 3 0 Nexus 6 (released November 2014) 4 0 Nexus 5X (released October 2015) 5 o Nexus 6P (released September 2015) 6 24. On information and belief, Google, through agreements with third-party manufacturers 7 such as Samsung and carriers such as Verizon, causes its Android software and apps to be pre-installed 8 on phones and devices that are sold to consumers in Arizona, and which consumers "consent" to as part 9 of the setup process after buying such phones and devices. 10 25. Go ogle also sells, advertises and/or otherwise offers for consideration various software 11 services to Arizona consumers, either directly or indirectly. For example, Google's software offerings 12 include the Android operating system ("Android"), Google-authored apps ("Google apps"), Google 13 Accounts, and Google web browsers, such as Chrome. In its privacy policy, Google defines its services 14 as including (i) "Google apps, sites, and devices, like Search, YouTube, and Google Home," (ii) 15 "Platforms like the Chrome browser and Android operating system," and (iii) "Products that are 16 integrated into third-party apps and sites, like ads and embedded Google Maps." Ex. 72 (GOOG-GLAZ- 17 00000715) at 715. 18 26. In consideration for use of Google's software products and devices, Google collects, inter 19 alia, "information about your location when you use our services, which helps us offer features like 20 driving directions for your weekend getaway or showtimes for movies playing near you." Jd. at 718. 21 Google tells consumers it must collect this data "to deliver our services," "ensure our services aTe 22 working as intended," "develop new services," and "show you personalized ads." Jd. at 719. • • • 23 24 25 26 27 28 24(. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . ); 2/28/2020- EUO Tr. at 327:17-18 ( _ _ _ _ _ _ _ _. . ). -8COMPLAlNT FOR INJUNCTIVE AND OTHER RELIEF 1 27. Google also collects users' location data from its Android operating system. Google's 2 Android is a popular smartphone operating system in the United States. Beyond smartphones, Android 3 also runs on various other types of devices, such as tablets, televisions, home appliances, and fitness 4 trackers. Android is also the operating system that is installed on all of Google's own smartphone 5 devices. 6 28. Android is technically an open-source software, meaning that anyone can take the 7 Android source code, modify it in any way, and install it on a compatible device. Such modifications are 8 called "forks" of Android. 9 10 29. While third-patty smmtphone manufacturers ("OEMs") m·e technically fi·ee to pre-install any Android fork on their phones, 11 . 2/28/2020 - 12 30. EUO Tr. at 448:9-17. Google causes its preferred versions of Android to be pre-installed on many smartphones, 13 and forbids OEMs from pre-installing any Google apps (such as Search or Maps) on other versions of 14 Android. Google has a large incentive to do this: its own version of Android contains Google Mobile 15 Services ("GMS"), 16 . 2/28/2020- EUO Tr. at444:8-445:9; see also Ex. 201 (GOOG- 17 18 GLAZ-00149241) ( 19 20 ). 21 31. 22 23 The location data that Google collects-from my source-adds an enormous amount of value to Google's advettising offerings. As explained above, Google is primarily an advertising 24 25 26 27 28 2 GMS 9/25/2019- EUO Tr. at 139:1 6. That collection includes Jd. at 138:4-10; see also https://www.android.com/gms/ (GMS is "a collection of Google applications and APis that help support functionality across devices. These apps work together seamlessly to ensure your device provides a grea user experience right out of the box."). -9- COMPLAINT FOR INJUNCTIVE AND OTHER RELIEF 1 company-in 2019, Google made $161 billion in revenue, of which $135 billion (84%) came from 2 advettising. 3 32. For instance, one of Google's advettising offerings is called Store Visits. With this 4 product, Google is able to inform its advettisers how effective their ads are by informing them when 5 viewing an ad online drives a physical store visit. Google is only able to do this by collecting massive 6 amounts of user location data. 7 B. 8 9 Overview of Google's Many Location-Related Settings 33. As explained further below, Google's products and services include a web of interrelated settings that relate to Google's collection of a user's location-related information. These settings, 10 individually and collectively, are in many cases deceptive, and their use by Google to collect users' 11 location data is unfair and deceptive. 12 34. The settings fall into three categories: (i) account-level, (ii) device-level, and (iii) app- 13 level. In many instances, these settings are defaulted to enable collection of user location data, unless the 14 user affirmatively disables the settings. In many instances, the settings can conflict with one another, but I5 Google collects user location data regardless. In many instances, locating and/or understanding the 16 appropriate setting is extraordinarily difficult and confusing. 17 35. Device-level settings are those that are specific to a given hardware device, like a 18 smartphone or tablet. A user may have a single Google Account that is used on multiple devices. For 19 example, a device-level location setting may be turned off for that user's Pixel phone, but turned on for 20 the user's tablet. 21 22 23 36. Account-level settings are those that apply to a user's entire Google Account and are propagated to all devices associated with that Google Account. 37. App-level settings are settings specific to a pmticular app. An app-level setting can relate 24 to a Google app, such as Google Maps. An app-level setting can also apply to third-party apps that are 25 installed on an Android device. 26 27 38. Although these various settings have changed over time (including recently), the following table includes some of the relevant settings today: 28 -10- COMPLAINT FOR INJUNCTIVE AND OTHER RELIEF I 2 3 4 5 6 7 Setting Name Device Location (or Location Master) Category Device-level setting Google Location Device-level setting Accuracy (formerly known as Google Location Services) ("GLA") Usage & Diagnostics Device-level setting WiFi Scanning Device-level setting When turned on, this setting purpottedly helps Google improve the Android operating system ("OS"). It collects the user's IP addresses, which can be used to infer location. This setting allows apps and services to be able to obtain WiFi scans even when the WiFi setting is off. Bluetooth Scanning Device-level setting This setting allows apps and services to be able to obtain Bluetooth scans even when the Bluetooth setting is off. App-levellocation permission Location History ("LH") App-level setting Account-level setting Location Reporting Web & App Activity ("WAA'') Device-level setting Account-level setting Supplemental Web & App Activity ("sWAA") Google Location Sharing Device- and account-level setting Account-level setting When on, this setting gives an app permission to access the location of the corresponding device's location. When on, this setting allows Google to build a comprehensive list of everywhere the user goes with their devices that also have Location Reporting (explained below) turned on, even when the user is not using a Google service. LH also powers a product called Timeline, which is a user-facing product in which users can view and delete the places they have been. This is a sub-setting of LH. When on, it enables the device to report location via Google's Location History setting. When this setting is on, Google saves a user's Google activity. For example, when a user uses Google Search or Google Maps to search for "restaurants near me," Google collects the search term as well as information about that activity, such as a user's location and IP address. W AA also powers a product called My Activity, which is a userfacing product in which users can view and delete their WAA. This is a sub-setting to W AA. When it is on, it allows a user's Chrome history and activity from websites and apps that use Google services to be collected. This setting allows a Go ogle Account holder to share his real-time location with others. 8 9 Description This setting is the main location setting on a device and controls whether a device's location setting is on. When it is on, GPS is nsed to obtain a user's location. GLA is a network-based location service that uses signals other than GPS to obtain a user's location. Specifically, GLA obtains location from WiFi, cellular networks and a variety of sensors ( 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -11- COMPLAINT FOR INJUNCTIVE AND OTHER RELIEF Setting Name GoogleAd Personalization ("GAP") 1 2 Category Account-level setting Description When off, this setting purports to prevent Google from targeting a user with ads based on the user's location. 3 See, e.g., Ex. 202 (Google's Consolidated Final Responses to the First, Second, and Third CIDs 4 ("Google's Responses to C!Ds 1-3")) at 17-20 (4/17/2019 response to DFI 7 from the First CID); Ex. 5 203 (GOOG-GLAZ-00076994) at 7000-002; 9/25/2019- EUO Tr. at 83:11-89:14. 6 39. Location History in particular is central to Google's revenue stream. Among other things, 7 8 9 Ex. 204 (GOOG-GLAZ-00085882) at 882. 10 40. 11 I d. 12 41. 13 I d. 14 c. Google Admits Its Location-Related Settings Are a 15 42. The array of location-related settings described above misleads and deceives users of 16 Google's products into believing that they are not sharing location information when they actually are. 17 Their use by Google also constitutes unfair acts and practices. 18 43. 19 20 . Ex. 56 (GOOG-GLAZ-00002914) ( 21 ); Ex. 205 (GOOG-GLAZ-00055259) at 22 ). 259 ( 23 44. 24 25 • Ex. 206 (GOOG-GLAZ-00055452) at 452. 26 27 • Ex. 207 (GOOG-GLAZ-00077898) at 899. 28 -12- COMPLAINT FOR INJUNCTIVE AND OTHER RELIEF I • 2 3 Ex. 208 (GOOG-GLAZ-00055552) at 553. • 4 5 Ex. 209 (GOOG-GLAZ-00057477) at 477. • 6 Ex. 210 7 (GOOG-GLAZ-00057940) at 940. 8 • 9/25/2019 9 10 - 11 • EUO Tr. at 275:9-277:6. 12 13 Ex. 211 (GOOG-GLAZ- 14 000 17790) at 790-91. 15 • 16 .17 18 - E x . 212 (GOOG-GLAZ-00161717) at 717. 19 • Ex. 213 (GOOG-GLAZ-00028891) at 896-97. 20 21 • 22 23 Ex. 214 (GOOG-GLAZ-00101814) at 14. • 24 25 26 Ex. 215 (GOOG-GLAZ-00163209) at213. 45. . See, e.g., Ex. 43 (GOOG-GLAZ-00031017) at 019-23 ( 27 (9/25/2019- EUO Tr. at 49:17-50), 28 ). -13COMPLAINT FOR INJUNCTIVE AND OTHER RELIEF 1 46. Though Google has published a variety of documentation for users, 2 3 . See Ex. 216 (GOOG-GLAZ00078009) at 037 ( 4 5 ), 059 ( 6 7 ); Ex. 214 (GOOG-GLAZ- 8 00101814) at 814 ( 9 47. ). The result of this complex web of settings and purpmied "consents" 10 11 (Ex. 209 (GOOG-GLAZ-00057477) at 4 78) that misleads users into handing over their location data to Google. 12 48. Thus, though Google claims to have obtained consent to collect and store its users' data, 13 that consent is based on a misleading user interface, as well as other unfair and deceptive acts and 14 practices. 15 49. . See Ex. 217 (GOOG-GLAZ-00046967) at 968 ( 16 . 17 ). 18 19 . E.g., Ex. 218 (GOOG-GLAZ-00114667) at 667-68 ( 20 21 ). 1. 22 23 Google Misleads and Deceives Users Through Its Location History and Web & App Activity Settings 50. While Google obtains its users' location information tln·ough numerous settings and 24 products, two of the primary settings through which Google misleads, deceives, and conceals material 25 facts from users are Location History and Web & App Activity. 26 27 28 -14- COMPLAINT FOR INJUNCTIVE AND OTIIER RELIEF 51. On August 13,2018, the AP published an exclusive repmt titled "Google tracks your 2 movements, like it or not" that publicly exposed this deception. 3 The article explained how Google 3 "records your movements even when you explicitly tell it not to." 4 52. Until the AP article was published, Google represented on its public help page regarding 5 Location History that "You can turn off Location History at any time. With Location History off, the 6 places you go are no longer stored." Ex. 8 (old Google help page titled "Manage or delete your Location 7 History"); see also 7/11/2019 8 9 53. EUO Tr. at29:10-31:2. But that was not true. Even with Location History off, Google still collected and stored location data via (at least) its Web & App Activity setting. Thus, for example, a user who had Location 10 History off and looked up the weather where he lived or searched the web with Google's Search app 11 would still unlmowingly send Google his location. 12 54. . Ex. 20 (GOOG-GLAZ-00001521) at 523; Ex. 23 13 14 (GOOG-GLAZ-00001371) at 373. . Ex. 20 (GOOG-GLAZ-00001521) at 15 16 523. 55. 17 18 19 20 21 . Ex. 219 (GOOG-GLAZ00001422). 22 56. 23 24 25 . 3/6/2020 EUO Tr. at 176:10-178:11. 26 27 28 3 htt!2s://at2news.com/828aefab64d4411 bac257a07 c 1aillecb/AP-Exclusive:-Google-tracks-)'ourmovements.-like-it-or-not. -15COMPLAINT FOR INJUNCTIVE AND OTHER RELlliF I 57. 2 3 4 Ex. 24 (GOOG-GLAZ-00001458) at 464-65. 5 . !d. at 466. 6 7 After the AP story was published, Google updated its help page to remove the disclosure 58. 8 "With Location History off, the places you go are no longer stored." Ex. 11 (GOOG-GLAZ-00000927). 9 In other words, Google attempted to "fix" this particular deception only when it was caught. 10 59. 11 . 7/11/2019 EUO Tr. at 139:13-17 ( 12 ). Indeed, 13 Ex. 220 (GOOG-GLAZ-00057237) at 238; see also Ex. 221 14 15 (GOOG-GLAZ-00146003) at 007 ( ); Ex. 213 (GOOG-GLAZ-00028891) at 894-95 ( 16 17 18 ). 19 20 60. 21 . Ex. 222 (GOOG-GLAZ-00069965) at 965 ( 22 23 ). 61. 24 25 • 26 Ex. 19 (GOOG-GLAZ-00001288) 27 28 at 289. -16COMPLAINT FOR INJUNCTIVE AND OTHER REL!EF 1 • 4 • 5 Ex. 223 (GOOG- 6 GLAZ-00057861) at 861. 7 • 8 9 10 Ex. 224 (GOOG- 11 GLAZ-00149867) at 868. 12 • 13 ld. at 867. 14 • 15 16 Ex. 18 (GOOG-GLAZ-00001266) at 270. • 17 Ex. 20 (GOOG- 18 GLAZ-00001521) at 523. 19 62. Completely independent of its connection to Location History, Web & App Activity itse!i 20 is another source of deceptive and unfair acts and practices and unlawful concealment by Google. Until 21 around early- to mid-2018, Google's disclosures during account creation made no mention ofthe fact 22 that location information was collected via WAA, which is defaulted to "on." 7/12/2019 23 Tr. at 175:7-15, 374:1-13. 24 63. EUO Even after Google changed this policy, users had to click on a "Learn More" link to view 25 that disclosure until1ate 2018, when Go ogle finally disclosed that W AA may include location data 26 collection without users having to click on "Learn More." Id. at 376:15-3. Thus, users who had set up an 27 account prior to 2018 would never receive a disclosure that WAA collects location data when setting up 28 their account on a new device. Id. at 3 81:16-23. The same was true after account setup if a user wanted -17COMPLAINT FOR INJUNCTIVE AND OTHER RELIEF 1 to enable a Google product that required WAA to be "on": the WAA disclosure made no mention of 2 location collection. Ex. 225 (GOOG-GLAZ-00101684) at 684 ( ). 3 4 64. Additionally, until Android Q, an Android user could not directly access the W AA EUO Tr. at 164:16-166:19.4 Instead, a user would have to 5 settings on his phone. 7/12/2019 6 navigate to the device's settings, then to a Google link which took the user to his Google Account, then 7 navigate down to W AA. I d. 65. 8 9 10 . Ex. 226 (GOOG-GLAZ-00107030) at 030 ).5 ( 11 66. 12 13 . 7/12/2019 EUO Tr. at 182:23-194:12. 14 . See id. at 15 -.ld. 16 183:24-184:10; Ex. 227 (GOOG-GLAZ-00084080) at 1 ( ). 17 18 67. 19 20 21 Ex. 228 (GOOG-GLAZ-00106193) at 194. 68. 22 7/12/2019 23 EUO Tr. at 195:11- 24 25 26 27 28 4 At least prior to Android Q, the same was true of the Location History setting. See 7/12/2019 EUO Tr. at 165:13-166:4, 170:6-171:1. Android Q, also known as Android 10, was released on September 3, 2019. See httl:)s://www.theverge.com/20 19/9/3/20842507/google-android-1 0-g-l:)ixelrelease-download-availability. 5 7112/2019 EUO Tr. at 69:15 18. -18COMPLAINT FOR INJUNCTIVE AND OTHER RELIEF I 205:22; Ex. 202 (Google's Responses to CIDs 1-3) at 92-95 (9/4/2019 response to DFI 23 from the 2 Third CID) ( 3 ). 4 5 6 7 69. - · E x . 229 (GOOG-GLAZ-00077413) at 413 ( ). 8 I d. 9 10 11 . 2/27/2020- EUO Tr. at 12 13 52:22--58:13. 6 14 .Jd. at55:3-13. 15 .Jd. at 58:14-59:2. 16 70. 17 18 WiFi 2. 19 Scanning and WiFi Connectivity Settings 20 21 71. One of Google's location settings is WiFi Scanning. WiFi Scanning and WiFi 22 connectivity are independent settings, and both can be switched off. 9/25/2019- EUO Tr. at 90:2--7. 23 Whereas the WiFi connectivity setting 24 25 26 27 28 6 - 2/27/2020- EUO Tr. at 57:20 58:13. .Jd. at 157:10-20. -19- COMPLAINT FOR INJUNCTIVE AND OTHER RELIEF 7 1 2 Id at 117:4-118:5. 3 72. Google's written disclosures at most suggest to users only that WiFi Scanning (as 4 opposed to WiFi connectivity) is related to location data. Ex. 230 (GOOG-GLAZ-0000 11 05) at 106 5 ("To help apps get better location info, you can let your device scan for nearby Wi-Fi access points ... 6 Tap Advanced> Scanning ... Turn Wi-Fi scanning ... on or off'). 7 8 9 73. The user interface for the WiFi Scanning setting is housed within location settings, while the WiFi connectivity setting itself is separate. 8 This leads users to believe that the two functions 10 (scanning and connectivity) are separate, and that if they disable the WiFi Scanning permission on their 11 device, Google no longer collects, uses, or stores location information derived from WiFi scans. 12 74. 13 . 9/25/2019- EUO Tr. at 88:23-89:10. IfWiFi Scanning is off, 14 15 . Id at 91 :2-7. Fmther, as 16 17 of at least November 1, 2017, 18 Ex. 43 (GOOG-GLAZ-00031 0 17) at 022. 19 20 21 75. Thus, despite the user attempting to prevent the repmting ofWiFi-based location data- and despite the user affirmatively turning the Location Master off 22 23 24 25 26 27 28 7 Ex. 231 (GOOG-GLAZ-00109617) at 617. Id 8 Depending on the OEM and build of Android, the path can look like Settings > Privacy and safety > Location> Improve accuracy> WiFi scanning. See https://www.solveymutech.com/turn-off-wifibluetooth-scanning-location-accuracy-android-marshmallow/. -20COMPLAINT FOR INJUNCTIVE AND OTHER RELIEF I 76. In short, the separation of the WiFi Scanning and WiFi connectivity settings misleads 2 users into providing location data to Google even if they do not want to. Google's disclosures suggest 3 disabling "WiFi Scanning" will prevent Google from scanning nearby WiFi access points. 4 5 6 77. 7 See Ex. 43 (GOOG-GLAZ-00031017) at 020-21. 8 Jd at 021. 9 9 10 .Jd at 11 12 021-22. 10 78. 13 In addition to deceiving consumers through the WiFi setting described above, • 14 15 . Jd. at 021. 16 17 D. Google Uses Its Users' Locations Even When Users Turn Off the Relevant Permissions 1. 18 19 20 79. In more recent versions of Android, individual apps ask for the user's permission to use 21 location data, and users can change this permission through their settings. This permissions structure is 22 called a "run-time" permission model; before this model, Google used an "install-time" model that 23 24 9 25 Android P became publicly available on August 6, 2018. httgs ://www. the verge .com/circui tbreaker/20 18/8/6/ I 765 6294/essential-ghone-andro id-9-gie-ugdatenow-available. 26 10 27 28 -21- COMPLAINT FOR INJUNCTIVE AND OTHER RELIEF I sought a user's permission only when the app was installed for the first time. 9/25/2019 - 2 163:3-12,215:3-216:7. Run-time permissions were introduced with Android Marshmallow. Jd. 11 3 80. EUO Tr. at Thus, under the mn-time model, Google represents to its users that a given app would not 4 be able to obtain a user's location if the user denies app-levellocation permissions. Ex. 232 (GOOG- 5 GLAZ-00027697) at 700 ( 6 ); Ex. 233 (GOOG-GLAZ-00000381) at 381 7 (public-facing help page explaining that users "can control which apps can see and use your phone's 8 location. For example, you could let Google Maps use your phone's location to give you driving 9 directions, but not share the location with a game or social media app."). 81. 10 11 . Ex. 45 (GOOG-GLAZ-00005829) at 829- 12 13 32 ( ); Ex. 234 (GOOG-GLAZ-00060013) at 013 14 ); Ex. 114 15 ( 16 (GOOG-GLAZ-00198467) at 469 ( 17 18 ); 19 449 ( 20 379-83 ( 12 Ex. 235 (GOOG-GLAZ-00150448) at ); Ex. 236 (GOOG-GLAZ-00027379) at 21 22 ); Ex. 237 (GOOG-GLAZ-00096366) at 378 ( ). 23 24 25 26 11 Android Marshmallow was publicly released in October 2015. https ://www .theverge.com/20 15/ I 0/5/94 5443 7/andro id-6-0-marshmallow-now-availab Ie. 12 27 28 See 2/27/2020- EUO Tr. at 117:1 3,119:17 19. . See id. at 98:19-99:4. -22COMPLAINT FOR INJUNCTIVE AND OTHER RELIEF 1 82. 2 . Ex. 45 (GOOG-GLAZ-00005829) at 829. In teclmical terms, 3 4 (Ex. 238 (GOOG-GLAZ-00027688) at 689)--- 5 6 Ex. 232 (GOOG-GLAZ-00027697) at 697; see also Ex. 214 (GOOGGLAZ-00101814) at 814 ( ). 7 8 83. . Ex. 45 (GOOG-GLAZ-00005829) at 829 ( 9 ). 10 84. 11 12 . See Ex. 47 (GOOG-GLAZ-00033771) at 772 ( 13 14 ). 15 16 17 85. 18 19 20 . Ex. 235 (GOOG-GLAZ-00150448) at 452 ( 21 22 23 ). 86. 24 25 . Id. at 450 ( 26 27 ). 28 -23COMPLAINT FOR INTIJNCTIVE AND OTHER RELIEF 1 2. 2 87. 3 4 Ex. 239 (GOOG-GLAZ-00037593) at 640. And Google 5 consistently makes representations that location data is collected and stored only when the respective 6 settings are turned on. E.g., Ex. 8 at l ("With Location History off, the places you go are no longer 7 stored"); Ex. 72 (GOOG-GLAZ-00000715) at 718 ("The types of data we collect depend in part on your 8 device and account settings. For example, you can turn your Android device's location on or off using 9 the device's settings app"). 10 11 88. Thus, a reasonable belief for users is that, when they turn their device's Location Master off, Google no longer collects, stores, or uses any location information. 12 13 14 Ex. 240 (GOOGGLAZ-00157550) at 550; see also Ex. 69 (GOOG-GLAZ-00096793) at 807 ( 15 ). 16 89. . 5/8/2020 17 18 EUO Tr. at271:23-272:1 ( 19 20 21 22 23 24 ); 5/21/2020 Rough EUO Tr. at 98:4). 6( 90. 25 . See Ex. 241 (GOOG-GLAZ-00097091) at 092. 26 27 91. 28 -24COMPLAINT FOR INJUNCTIVE AND OTHER RELIEF 1 2 3 4 . See id.; see also Ex. 242 (GOOG-GLAZ-00101518) at 518 (• 5 6 7 ). 8 9 92. Ex. 243 (GOOG-GLAZ-00111292) at 10 11 12 320. 93. 13 14 (Ex. 84 (GOOG-GLAZ-00079712) at 712 ( )), 15 16 17 3/6/2020 18 19 EUO Tr. at 378:14-379:6. 20 94. 21 22 23 24 25 26 Ex. 244 (GOOG-GLAZ-00031991) at 991. 27 28 -25COMPLAINT FOR INJUNCTIVE AND OTHER RELIEF 95. 1 2 3. 3 4 5 96. Google's culpable conduct is not limited solely to collecting location data in a misleading 6 and deceiving way; it also uses location data for ads in ways that mislead and deceive users, including 7 those in Arizona. 8 97. 9 Google serves ads to its users based in part on location data reh·ieved fl·om, among other settings, Location History and Web & App Activity. 9/25/2019- EUO Tr. at 222:10-25. Google 10 purports to allow users to opt-out oftbis advettisement personalization; in order to do so, Google 11 provides an account-level toggle in a user's Google Account under "Data & Personalization." Ex. 245 12 (GOOG-GLAZ-00000415) at 415 ("You can change where you see personalized ads or stop Google 13 from using your activity to personalize ads."). 98. 14 15 Such a toggle implies that the user has control over whether Google will serve ads based on the user's location. But Ex. 70 (GOOG-GLAZ-00085629) at 636. 16 17 99. 18 19 5/21/2020 RoughEUO Tr. at 114:9-115:11. .Id. at 84:14--19. 20 100. 21 22 . See 2/27/2020- EUO Tr. at 172:2--15; 2/28/2020- EUO Tr. 318:24-- 23 24 319:7. 101. 25 . 2/27/2020- EUO Tr. at 163:6-16, 167:8- 26 27 28 22. .Id. -26COMPLAINT FOR INJUNCTIVE AND OTHER RELIEF 1 102. 2 3 4 . 2/27/2020- EUO Tr. at 172:2-15 ( ). 5 6 103. 7 8 . 2/27/2020- EUO Tr. at 189:18-190:17. 104. 9 10 . Ex. 70 (GOOG-GLAZ-00085629) at 638 ( 11 12 ). 13 14 E. Go ogle Automatically Changes the State of Permissions Without Notifying Users 105. 15 Presumably, the entire point of including various toggles and consents on devices and 16 accounts is to give the user control over the state of their device and/or account. However, Google has 17 pushed a variety of updates that automatically change the user's location settings and defaults without 18 informing the user, much less seeking or obtaining consent. 19 106. For example, in August 2016, 20 21 22 23 . Ex. 79 (GOOG-GLAZ-00057389) at 389; see also Ex. 246 (GOOG-GLAZ-00058103) at 104 ( 24 ).13 25 26 13 27 28 As described above, sWAA is a setting, housed within WAA as a checkbox, that collects data from inWAA.Ex. 203 (GOOG-GLAZ-00076994) at 7002. This supplemental setting is itself misleading for users. See Ex. -27COMPLAINT FOR INJUNCTIVE AND OTHER RELIEF 1 2 3 4 5 6 . Ex. 79 (GOOG-GLAZ-00057389) at 389. 107. In another example, in around 2017, 7 8 9 . Ex. 78 (GOOG-GLAZ-00070610) at 610. 10 11 12 13 . !d. . !d.; see also Ex. 248 (GOOG-GLAZ-00070491) 14 15 at 491 ( 16 17 ). 108. 18 19 20 21 . 3/6/2020 290:14--291:24. 109. 22 23 Ex. 249 (GOOG-GLAZ-00125482) at 490 ( 24 25 ); Ex. 250 (GOOG-GLAZ-00065187) at 192 ( 26 27 28 247 (GOOG-GLAZ-00126368) at 384 ( ). -28COMPLAINT FOR INJUNCTIVE AND OTHER RELIEF EUO Tr. at 286:19-287:24, ); Ex. 251 1 2 (GOOG-GLAZ-00127414) at 414-16 ( 3 ). 4 5 F. Google Changes the Android User Interface to Increase Location 6 Expense of User Choice and Consent 7 110. at the 8 9 10 11 Ill. 12 13 14 15 . Ex. 51 (GOOG-GLAZ-00026768) at 769-72 ( ). 16 112. 17 18 9/25/2019- EUO Tr. at 199:4-6. 19 . Ex. 51 (GOOG-GLAZ-00026768) at 770.- 20 21 I. Id. at 769-77. 14 22 113. 23 One change to the Android UI was a change to the Quick Settings ("QS") panel on 24 Android KitKat. The QS panel becomes visible when a user pulls down from the top of the screen at 25 almost any point on an Android device. 9/25/2019- EUO Tr. at 202:15-22. The panel includes 26 toggles for various popularly used settings, such as WiFi. The QS panel previously included a toggle for 27 28 14 Android KitKat was publicly released on October 31,2013. See https:/I googlebl og. bl o gspot.com/20 13/ I 0/android-for-all-and-new-nexus-5 .html. -29COMPLAINT FOR INTIJNCTIVE AND OTHER RELIEF 1 the Location Master; 2 3 Ex. 51 (GOOG-GLAZ-00026768) at 772; Ex. 71 (GOOGGLAZ-00027187) at 196 ( 4 ). 114. 5 6 7 . Ex. 51 (GOOG-GLAZ-00026768) at 768-72. 8 9 . Ex. 61 (GOOG-GLAZ00026360) at 360. 10 .Jdat361( )Y 11 12 115. 13 . See Ex. 52 (GOOG- 14 15 GLAZ-00005425) at 428; see also Ex. 252 (GOOG-GLAZ-00028327) at 327 ( 16 ). 116. 17 18 19 20 21 22 ... . Ex. 52 (GOOG-GLAZ- 00005425) at 429. 117. 23 . Ex. 51 (GOOG-GLAZ-00026768) at 785; see also 24 25 9/25/2019- EUO Tr. at 238:10-239:3; Ex. 253 (GOOG-GLAZ-00028014) at 014-25 ( 26 27 28 15 -30COMPLAINT FOR INJUNCTIVE AND OT!illR RELillF 1 2 ). 3 118. 4 . Ex. 254 (GOOG-GLAZ-00115868) at 868 (sheet!, cell 5 6 Gl4). 7 . Ex. 53 (GOOG-GLAZ-00026843) at 850. 8 9 10 11 . Id. at 847-50. . See id. 12 13 14 at 846-47. 119. 15 . Ex. 255 (GOOG-GLAZ-00027518) at 518; Ex. 256 16 17 18 (GOOG-GLAZ-00029585) at 615. 120. .Ex. 19 20 21 257 (GOOG-GLAZ-00032539) at 539. 121. 22 23 Ex. 52 (GOOG-GLAZ-00005425) at 431. 24 Id. at 426. 25 26 27 Id. at 426. 28 -31COMPLAINT FOR INJUNCTIVE AND OTHER RELIEF 1 2 3 . !d. at 425. 122. . See, e.g., Ex. 4 5 53 (GOOG-GLAZ-00026843) at 844 ( 6 7 ). 123. 8 9 10 11 12 13 14 124. 15 16 . Ex. 254 (GOOG-GLAZ-00115868) at 868 (sheetl, rows 12-14). . See Ex. 61 (GOOG-GLAZ-00026360) at 361 ( 17 18 19 ) (emphasis in original). 20 21 125. 22 23 . Ex. 256 (GOOG-GLAZ-00029585) at 595. 24 25 126. 26 . !d. 27 28 -32COMPLAINT FOR INJUNCTIVE AND OTHER RELIEF 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 I d. 18 -----··Id. 127. 19 20 128. 21 22 23 G. Go ogle Misleads and Deceives Users Regarding Its Deletion of Their Location Information 24 25 26 129. Google admits that, tmti1 at least as late as 2015, • • • • • • • • • • • · - - - - - - - - - - - - - Ex. 214 (GOOG-GLAZ-00101814) at 814. - - 27 28 • • • • • • · In particular, Google now represents that users are able to delete the location data that -33COMPLAINT FOR INJUNCTIVE AND OTHER RELIEF 1 it has collected and stored. Ex. 36 (GOOG-GLAZ-00000001) at 001-02 ("We'll keep this data in your 2 Goog1e Account until you choose to remove it," "[w]hen you delete data in your Google account, we 3 immediately start the process of removing it from the product and our systems"); see also Ex. 202 4 (Google's Responses to CIDs 1-3) at 79-80 (9/47/2019 response to DFI 10 from the Third CID) ( - 5 ). 6 130. 7 8 9 131. While that by itself is misleading and deceptive, what is worse is that Google's user- 10 facing interface displays data being deleted immediately 11 (GOOG-GLAZ-00031110) at 124 ( 12 Ex. 59 ). 13 . Ex. 258 (GOOG-GLAZ-00065293) at 295 ( 14 15 16 17 -)(emphasis in original). 18 H. 19 20 21 Google Has Engaged In Willful Violations Of The Arizona Consumer Fraud Act 132. Google's many violations of the Arizona Consumer fraud act were willful, i.e. it knew or should have known its conduct was of the nature prohibited by the Arizona Consumer Fraud Act. 133. Google willfully misleads and deceives users into enabling collection of their location 22 data and using and storing their location data in ways users do not !mow or understand. Google also 23 willfully engages in unfair acts and practices, including through the conduct described above. 24 134. 25 • Some of this evidence was described above, and more is set forth here and below: 26 27 28 Ex. 209 (GOOG-GLAZ-00057477) at 477-78. -34COMPLAINT FOR INJUNCTIVE AND OTilER RELIEF 2 • • Ex. 259 (GOOG-GLAZ-00078007) at 807 . 3 4 - E x . 216 (GOOG-GLAZ-00078009) at 018. 5 • .Ex. 6 7 260 (GOOG-GLAZ-00057339) at 340. 8 • Ex. 270 (GOOG-GLAZ-00055829) at 851. 9 10 • 11 12 Ex. 261 (GOOG-GLAZ-00099239) at 239. 13 14 • 15 Ex. 262 (GOOG-GLAZ- 16 17 00 117506) at 506. 18 135. 19 00100799) at 800 ( . Ex. 263 (GOOG-GLAZ- 20 ). 21 22 136. 23 . Ex. 260 (GOOG-GLAZ-00057339) at 339. 24 25 26 • 27 28 -35COMPLAINT FOR INJUNCTIVE AND OTHER RELIEF .Jd. at 339 ( I 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 ------------liM); Ex . (----------------). ----------··!d.; Ex . (----------------·);Ex. 264 (GOOG-GLAZ-00048459) at 478 • 266 (GOOG-GLAZ- 00151516) at 517 c••••••••••••••••••••• -----------------··Ex. c·------------------Ex. Ex. c--(-------------). --------------------.Ex. -----111111. Ex. Ex. ). • 23 (GOOG-GLAZ- 00001371) at 373 ); 267 (GOOG-GLAZ-00035559) at 559 ); 268 (GOOG-GLAZ-00078652) at 52 • 47 (GOOG-GLAZ-00033771) at 72 ( - - - - - - - - - - - - - - ) . • 269 (GOOG-GLAZ-00073037) at 037-43 ( - - - - - -). • . IV. 18 266 (GOOG-GLAZ-00151516) at 517. ARIZONA'S INVESTIGATION INTO COOGLE'S UNFAIR AND DECEPTIVE ACTS AND PRACTICES 19 20 265 (GOOG-GLAZ-00078761) at 761 13 7. The Arizona Attorney General's Office ("AGO") first became aware of Google's 21 potential violations of the Arizona Consumer Fraud Act in connection with the collection of user 22 location data after the Associated Press published the article entitled, "Google tracks your movements, 23 like it or not." 24 138. 25 26 139. 27 140. 28 -36- COMPLAINT FOR INTIJNCTNE AND OTHER RELIEF 1 2 3 4 5 6 141. 7 8 9 10 11 12 13 14 15 16 . 3/6/2020 EUO Tr. at 67:20-70:11. 17 !d. 18 at71:7-17. 19 142. 20 21 22 23 2/28/2020- EUO Tr. at448:9-17; 9/25/2019- EUO Tr. at 139:1-140:21. 24 25 26 2/28/2020- EUO Tr. at 444:8-445:17, 448:9-17; see also 9/25/2019- EUO Tr. at 64:6-13. 143. 27 28 -37COMPLAlNT FOR INJUNCTIVE AND OTHER RELIEF 1 2 3 . 3/6/2020 4 144. EUO Tr. at 122:6-124:2. 5 6 7 Ex. 202 (Google's Response to C!Ds 1-3) at 51 (5/30/2019 response to RFP 19 from the First CID). Bl 8 9 10 11 12 13 5/2!/2020 Rough EUO Tr. at 84:15-19. 145. 14 15 16 17 18 19 20 146. 21 22 23 24 25 26 147. 27 28 -38COMPLAINT FOR INTIINCTIVE AND OTHER RELIEF I 2 . See 5/8/2020 3 4 5 EUO Tr. at398:18-401:17. Location History and EUO Tr. at 167:19-169:25; 3/6/2020 Web & App Activity are user-facing settings. 6 7 8 148. 9 10 11 149. 12 13 14 15 16 150. 17 18 19 20 21 22 23 2/27/2020 1111111111 EUO Tr. at 59:17-61:15, 115:4-17, 124:17-125:5, 144:15-19, 194:17195:2; 2/28/2020 1111111111 EUO Tr. at 447:15-22,448:18--449:19,450:2--451:10,458:24--459:5.-- 24 25 26 27 28 -39- COMPLAINT FOR INJUNCTIVE AND OTHER RELIEF 1 16 2 • 3 151. 2/27/2020- EUO Tr. at 34:1-35:7, 115:18-23. 4 5 6 7 8 2/27/2020- EUO Tr. at 115:18-23; 5/8/2020 EUO Tr. at 115:11-17. 9 10 11 . 2/27/2020- EUO Tr. at 125:2-12. 12 . 5/8/2020 13 14 EUO Tr. at 61:7-18, 102:17-103:6. 15 152. 16 17 18 . E.g., 5/8/2020 EUO Tr. at 57:9-12, 59:25-60:17, 61:3-62:4, 79:10-80:12, 115:15-20; see also id. at 111:22-24 ( 19 ). 20 153. 21 22 23 24 25 16 26 27 28 5/8/2020 106:6-19. EUO Tr. at 28:4-21, 59:18 60:17, 61:3 6, 64:24-65:7, 70:16 71:6, 72:16 74:8, -40- COMPLAINT FOR INTIJNCTIVE AND OTHER RELIEF 1 2 3 4 154. 5 6 7 155. In short, the AGO's pre-suit investigation has been prejudiced by Google's uncooperative 8 conduct, delay tactics, and general failure to comply with the AGO's discovery demands. Even so, the 9 AGO's investigation to date has uncovered and confirmed the wrongdoing alleged herein. v. 10 11 CLAIM FOR RELIEF ARIZONA CONSUMER FRAUD ACT (A.R.S. § 44-1521, et seq.) 12 156. 13 forth herein. 14 157. Arizona realleges and incorporates by reference all prior paragraphs as though fully set The Arizona Consumer Fraud Act provides that "[t]he act, use or employment by any 15 person of any deception, deceptive or unfair act or practice, fraud, false pretense, false promise, 16 misrepresentation, or concealment, suppression or omission of any material fact with intent that others 17 rely upon such concealment, suppression or omission, in connection with the sale or adve1iisement of 18 any merchandise whether or not any person has in fact been misled, deceived or damaged thereby, is 19 declared to be an unlawful practice." A.R.S. § 44-1522(A). 20 158. Google is a "person" within the meaning of A.R.S. § 44-1521(6). 21 159. The Google products and services described in this Complaint, including but not limited 22 to Google apps, sites, and devices, Google Accmmts, Google ads, and platfmms like Google Chrome 23 and Android, are "merchandise" within the meaning of A.R.S. § 44-1521(5). 24 160. Google has systematically engaged in activities with a tendency or capacity to deceive 25 consumers. Google engaged in unlawful practices by employing deception, deceptive or unfair practices, 26 false pretenses, false promises, misrepresentations, or concealment, suppression or omission of material 27 facts with intent that others rely upon such concealment, suppression or omission, in connection with the 28 sale and advertisement of Google products and services. -41- COMPLAINT FOR INTIJNCTIVE AND OTHER RELIEF I 2 3 161. In particular, and as described above, Google's unlawful practices, in violation of the Arizona Consumer Fraud Act, include the following: a. Engaging in deceptive and unfair acts and practices by making the deceptive 4 misrepresentation and false promise that "[w]ith Location History off, the places you 5 go are no longer stored," when in fact Google continued to collect and store user 6 location information even with Location History turned off. 7 b. Concealing, suppressing, or omitting the material fact that Google continued to 8 9 collect and store user location information even with Location History turned off. c. Concealing, suppressing, or omitting during account creation the material fact that 10 location information was collected through Web & App Activity-which defaulted to 11 "on." 12 d. Engaging in deceptive and unfair acts and practices by making the deceptive 13 misrepresentation and false promise that users "can turn [their] Android device's 14 location on or off using the device's settings app" despite the fact that • • • 15 16 17 e. Concealing, suppressing, or omitting the material fact that • • • • • • • • 18 19 f. Engaging in deceptive and unfair acts and practices by • • • • • • • • • 20 21 22 g. Concealing, suppressing, or omitting the material fact that • • • • • • • • 23 24 25 h. Engaging in deceptive and unfair acts and practices by knowingly maintaining a 26 misleading and diverse array of settings related to location tracking that makes it 27 difficult if not impossible to understand the conditions in which Google will collect 28 location data. -42- COMPLAINT FOR INJUNCTIVE AND OTHER RELIEF 1. 2 3 Concealing, suppressing, or omitting the material facts about the conditions in which Google will collect location data . .J. Engaging in deceptive and unfair acts and practices by • • • • • • • • 4 5 6 7 k. Concealing, suppressing, or omitting the material fact that location settings were on. 8 1. Engaging in deceptive and unfair acts and practices by • • • • • • • • • • • 9 10 II m. Concealing, suppressing, or omitting the material fact that • • • • • • • • 12 13 14 15 16 n. Engaging in deceptive and unfair acts and practices by knowingly maintaining a confusing and misleading presentation of the WiFi scanning and WiFi connectivity settings that • • • • • • • • • • • • • • • • • • • • • • • 17 18 o. Concealing, suppressing, or omitting the material fact that • • • • • • • • • 19 20 p. Engaging in deceptive and unfair acts and practices by continuing to present location- 21 based advertisements to users • • • • • • • • • • • • • • • • • • • • 22 23 24 q. Concealing, suppressing, or omitting the material fact that •••••••••1111 25 26 27 28 -43COMPLAINT FOR INJUNCTIVE AND OTHER RELIEF r. Engaging in deceptive and unfair acts and practices by 111111111111111111111111 1 2 3 s. Concealing, suppressing, or omitting the material fact that 11111111111 4 5 6 7 8 9 10 11 162. With respect to its concealment, suppression, and omission of material facts described above, Google intends that users rely on the concealment, suppression, or omission. 163. Consumers in Arizona have in fact been the subject of deception, deceptive/unfair acts/practices, false pretense and promises, misrepresentations, and concealment, suppression, or omission of material facts described above. 164. Google's putpose in engaging in these unlawful practices is simple: increasing revenue 12 and profit. Go ogle generates over one hundred billion dollars of revenue and tens of billions of dollars o 13 profit every year from advertising, including, on information and belief, hundreds of millions of dollars 14 from ads shown to users in Arizona. These adve1iising profits are driven in large part by Google's abilit 15 to collect and store its users' location data, which enables Google to sell adve1iisers on the ability to 16 target ads to users in particular locations. It also enables Google to track "conversions" of ad clicks to 17 store visits. Google therefore goes to great lengths to collect location information from its users, 18 including by engaging in the unlawful activities alleged in this Complaint. Those unlawful activities 19 were done in connection with the sale or advertisement of merchandise within the meaning of A.R.S. 20 § 44-1522(A). 21 165. While engaging in the unlawful acts and practices alleged in this Complaint, Go ogle has 22 at all times acted "willfully" as defined by A.R.S. § 44-1531: Google knew or should have known that 23 its conduct was of the nature prohibited by the Arizona Consumer Fraud Act. 24 25 26 166. Google's violations present a continuing harm and the unlawful acts and practices complained of here affect the public interest. 167. Google's actions to date have failed to fully address the misleading and deceptive nature 27 of its business activities and the company continues to engage in acts prohibited by the Arizona 28 Consumer Fraud Act. -44- COMPLAINT FOR INTIJNCTNE AND OTHER RELIEF I 2 3 4 5 PRAYERFORRELIEF WHEREFORE, Arizona respectfully requests that the Court enter Judgment against Google as follows: A. Order Google to disgorge all profits, gains, gross receipts, and other benefits obtained by means of any unlawful practice as alleged herein, pursuant to A.R.S. §44-1528(A)(3); 6 B. Order Google to pay full restitution to consumers, pursuant to A.R.S. §44-1528(A)(2); 7 c. Order Google to pay Arizona a civil penalty of not more than $10,000 for each willful 8 9 violation of the Arizona Consumer Fraud Act, pursuant to A.R.S. § 44-1531; D. Enter an injunction against Google, permanently prohibiting it from continuing the 10 unlawful acts and practices alleged in this Complaint or doing any acts in furtherance of such unlawful 11 acts of practices, pursuant to A.R.S. § 44-1528(A)(1); 12 13 14 15 E. Order Go ogle to pay Arizona its costs of investigation and prosecution of this matter, including its reasonable attorneys' fees, pursuant to A.R.S. § 44-1534; and F. Award Arizona such further relief as the Court deems just and proper under the circumstances. 16 17 Dated: May 27, 2020 If.,. 18 19 20 21 22 23 24 25 26 27 28 MARK BRNOVICH ATTORNEY GENERAL By: Is/ Brunn W Rovsden III Joseph A. Kanefield Brunn W. Roysden III Oramel H. Skinner Michael S. Catlett Christopher Sloat Assistant Attorneys General Guy Ruttenberg (CA Bar No. 207937) (pro hac vice application forthcoming) Michael Eshaghian (CA Bar No. 300869) (pro hac vice application forthcoming) RUTTENBERG IP LAW, A PROFESSIONAL CORPORATION 1801 Century Park East, Suite 1920 Los Angeles, California 90067 Telephone: (310) 627-2270 guy@ruttenbergiplaw.com mike@ruttenbergiplaw.com David H. Thompson (DC Bar No. 450503) (pro hac vice application fmthcoming) Peter A. Patterson (DC Bar No. 998668) (pro hac vice application fmthcoming) COOPER & KIRK PLLC 1523 New Hampshire Ave NW Washington, DC 20036 Telephone: (202) 220-9600 dthompson@cooperkirk.com ppaterson@cooperkirk.com Attorneys for Plaintiff State ofArizona ex rei. Mark Brnovich, Attorney General -45COMPLAINT FOR INJUNCTIVE AND OTHER RELIEF , / t!f'~Ji__