Google, the tech behemoth and subsidiary of Alphabet Inc. has consented to an $8 million settlement over allegations of using misleading advertising to promote its Pixel 4 smartphone, according to an announcement made by Texas Attorney General Ken Paxton last Friday.
Google, renowned for its search engine, Android smartphone software, and ownership of the video-sharing platform YouTube, has been under increased scrutiny due to potential antitrust violations and consumer protection issues. This has resulted in two lawsuits filed by the federal government.
In the current case, it was argued by Paxton’s office that Google engaged radio announcers to provide testimonials about the Pixel 4 smartphone, despite the fact that the company had not permitted them to use the phone.
Paxton stated, “If Google is going to advertise in Texas, their statements better be true. In this case, the company made statements that were blatantly false, and our settlement holds Google accountable for lying to Texans for financial gain.”
In response, Google emphasized its commitment to obeying advertising regulations. Google’s spokesperson, Jose Castaneda, commented, “We are pleased to resolve this issue,” underlining that the company takes compliance with advertising laws seriously.
This lawsuit specifically accused Google of employing radio personalities to broadcast scripted advertisements that were purportedly personal testimonials about the Pixel 4, a claim made more egregious by the assertion that these individuals hadn’t had personal experience with the device they were endorsing.
This isn’t the first time Google has faced legal repercussions for its advertising practices. In a similar case last year, Google had to pay a $9 million settlement to the Federal Trade Commission (FTC) and seven U.S. states over nearly 29,000 misleading radio ads promoting the Pixel 4 in 2019 and 2020.
Texas has been actively pursuing several legal actions against Google, including an antitrust lawsuit related to advertising tech dominance and another lawsuit concerning face data collection practices. The state is intent on curbing Google’s industry influence wherever possible.
Google is not the only smartphone manufacturer that has been accused of deceiving customers. Huawei and Samsung have also faced allegations of falsely representing DSLR photos as samples from their phone cameras. However, Google’s Pixel 4 ad campaign appears to be especially problematic, with accusations stating that the company deliberately intended to mislead listeners and continued to do so even when confronted.
