The internet giant Google has agreed to pay $8 million to resolve a misleading advertising lawsuit the Texas Attorney General’s office brought against it for using phoney testimonials to promote its Pixel 4 smartphone. Although the corporation had declined to offer the radio presenters smartphones, Google was found guilty in Texas of paying them to give false endorsements of the smartphone.
Attorney General of Texas Ken Paxton claims that the business intentionally misled and deceived Texans in order to benefit financially. According to Paxton, Google’s advertising statements must be accurate. The settlement is the largest search engine’s most recent court battle. Google has been investigated by the US federal government and state solicitors general for possible antitrust and consumer protection offences.
The company that produces Android smartphone software and owns YouTube has a market share of 72% for phone operating systems and a market share of 94% for search engines. Antitrust lawsuits against Google have been filed in the US, Europe, India, as well as consumer protection lawsuits. The Competition Commission of India has also opened an investigation into Google over claims that the US company violates a previous antitrust directive by adding a service charge to in-app purchases.
Google’s reputation suffers as a result of numerous legal issues
Following a prior $9.4 million settlement on the same matter with the US Federal Trade Commission, Google has agreed to pay $8 million to settle the claim. Google and iHeartMedia were sued by the Federal Trade Commission for running misleading advertisements for smartphones.
“It’s my favourite phone camera out there, especially in low light, thanks to Night Sight Mode, and it’s also great at helping me get stuff done, thanks to the new voice-activated Google Assistant that can handle multiple tasks at once”, according to scripts that Google provided for radio DJs to read. Google paid iHeartRadio to spread false endorsements.
This agreement emphasises how crucial it is to abide by advertising regulations. In a statement, Google said that it takes adherence to advertising laws seriously and that it is happy to have found a solution.
In 2019, the Pixel 4 smartphone was unveiled. A motion sensor, a high-quality camera, and Google Assistant are all included in the Android smartphone known as the Pixel 4. The “Motion Sense” function on the phone enables users to interact with the device without touching it by using hand motions.
The company spent a lot of money developing the Pixel 4, which was advertised as the company’s greatest smartphone at the time. Google had also negotiated a contract for the phone’s distribution with significant wireless operators in the US. The phone was criticised for its short battery life and small storage space, which contributed to its poor sales performance.
Not for the first time, Google has been accused of running deceptive advertisements. 2019 saw the announcement of a $170 million settlement with Google over claims that the company’s YouTube platform had broken children’s privacy regulations by the Federal Trade Commission and the attorney general of New York.
The importance of openness and adherence to advertising laws is demonstrated by Google’s recent settlement with regard to deceptive advertising claims. The company has an obligation to be accurate in its advertising as a leading technology company, especially when it is pushing its own goods. The company’s reputation has suffered as a result of numerous legal issues throughout the years. To keep its reputation as a dependable brand, Google must take steps to ensure that its advertising is truthful and honest.
Summary
In order to resolve a claim of deceptive advertising for its Pixel 4 smartphone made by the Texas Attorney General’s office, Google has agreed to pay $8 million. According to the lawsuit, Google paid radio hosts to make up positive reviews of the product. The agreement comes after a previous $9.4 million agreement on the same issue with the US Federal Trade Commission. In recent years, Google has encountered a number of legal challenges, such as antitrust and consumer protection litigation in the US, Europe, and India.
In India, the Competition Commission has also begun looking into allegations of antitrust violations against Google. The most recent agreement serves as a reminder of the need of abiding by advertising laws and the necessity of truth in advertising, particularly for a major technological business like Google.
Disclaimer:
AI was used to conduct research and help write parts of the article. We primarily use the Gemini model developed by Google AI. While AI-assisted in creating this content, it was reviewed and edited by a human editor to ensure accuracy, clarity, and adherence to Google's webmaster guidelines.
