- Oracle Corporation has agreed to pay $115 million to settle a lawsuit accusing the database software and cloud computing giant of invading consumer privacy.
- With the rapid expansion of digital technology and data-driven marketing, concerns about privacy and the misuse of personal information have become increasingly prominent.
OUR TAKE
Oracle coughing up $115 million for allegedly violating privacy? That’s a hefty price tag for collecting and selling our digital breadcrumbs without permission. It’s like they were compiling a detailed dossier on our lives, from what we eat to how we shop. And then they sold it to marketers? It’s a reminder that even the biggest tech giants can step over the line. Let’s hope this settlement sends a message that consumers’ privacy is not for sale. It’s not just about money; it’s about trust. Companies like Facebook’s Cambridge Analytica scandal have shown us the dangers of unchecked data collection. Oracle’s move to limit future data gathering is a start, but the fight for privacy continues.
–Miurio huang, BTW reporter
What happened
Oracle Corporation has agreed to pay $115 million to settle a lawsuit accusing the database software and cloud computing giant of invading consumer privacy. The lawsuit, filed as a proposed class action in San Francisco federal court, alleged that Oracle collected and sold personal information without authorisation. The plaintiffs contended that Oracle violated federal and state privacy laws, as well as the California constitution, by creating unauthorised “digital dossiers” on hundreds of millions of individuals.
The preliminary settlement, filed on Thursday night, still requires judicial approval. Oracle has denied any wrongdoing. According to the lawsuit, these digital dossiers included sensitive information such as individuals’ online browsing history, banking details, gasoline purchases, dining habits, shopping behaviors, and credit card usage. The plaintiffs claimed Oracle then sold this information to marketers directly or through products like ID Graph. This product is advertised by Oracle as a tool to help marketers create personalised experiences for each consumer.
The settlement covers individuals whose personal information Oracle collected or sold since August 19, 2018. As part of the agreement, Oracle has committed to ceasing the collection of user-generated information from URLs of previously visited websites and text entered in online forms, except on Oracle’s own websites. This settlement marks a significant moment in the ongoing debate over consumer privacy and data collection practices by large technology companies.
The named plaintiffs in the case include privacy rights activist Michael Katz-Lacabe and Jennifer Golbeck, a University of Maryland professor specialising in social media and privacy. The law firm Lieff Cabraser Heimann & Bernstein, representing the plaintiffs, may seek up to $28.75 million from the settlement for legal fees.
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Why it’s important
This settlement is a critical development in the ongoing battle over consumer privacy rights and data protection. With the rapid expansion of digital technology and data-driven marketing, concerns about privacy and the misuse of personal information have become increasingly prominent. This case against Oracle highlights the potential for large technology firms to exploit user data without consent, raising significant ethical and legal questions.
The $115 million settlement serves as a substantial penalty and a warning to other companies engaging in similar practices. It underscores the importance of adhering to privacy laws and the potential consequences of failing to do so. By agreeing to change its data collection practices, Oracle is taking a step towards more responsible data management, setting a precedent for the industry.
The involvement of prominent figures like Michael Katz-Lacabe and Jennifer Golbeck brings additional attention to the issue of data privacy. Their participation emphasises the importance of safeguarding personal information in an era where data breaches and unauthorised data sales are increasingly common.
The legal fees, potentially amounting to $28.75 million, also highlight the significant costs associated with defending against privacy-related lawsuits. This settlement may encourage other technology companies to proactively review and improve their data privacy practices to avoid similar legal challenges.
The Oracle settlement is a pivotal moment in the ongoing discourse on consumer privacy. It demonstrates the legal system’s capacity to hold corporations accountable for unauthorised data collection and sales, while also prompting a reevaluation of privacy practices within the tech industry. This case serves as a reminder that as technology evolves, so must the measures to protect individuals’ privacy and personal information.
