Oracle Corporation has agreed to a $115 million settlement to resolve a class action lawsuit alleging that the company improperly collected and sold personal data without consent.
The lawsuit, filed in San Francisco federal court, accused Oracle of violating various privacy laws by creating unauthorized digital dossiers on hundreds of millions of individuals. These dossiers included sensitive information such as browsing history, banking activities, and shopping habits.
The preliminary settlement, which still requires judicial approval, includes provisions that prevent Oracle from collecting certain types of user data in the future, marking a significant moment in the ongoing conversation about data privacy and corporate responsibility.
Oracle, while denying any wrongdoing, has committed to new privacy measures and an audit program to ensure compliance.
Why it matters: This settlement underscores the growing importance of data privacy and the legal implications for companies that handle large amounts of personal information. As consumer awareness and regulatory scrutiny increase, businesses must carefully manage privacy issues to avoid hefty fines and damage to their reputation.
- Settlement Details: Oracle has agreed to pay $115 million into a non-reversionary cash fund to be distributed among the class members, covering individuals whose personal data was collected or sold since August 2018.
- Future Commitments: As part of the settlement, Oracle will cease collecting user-generated information from URLs of visited websites or text entered on online forms, except on its own websites. Additionally, Oracle will implement an audit program to review compliance with privacy obligations.
- Background of the Case: The legal action began in 2020 and involved an extensive investigation into Oracle’s data practices, including forensic analysis and consultation with privacy experts.
- Corporate Impact: This settlement comes as Oracle exits the advertising business, a move announced earlier by CEO Safra Catz, citing a decline in revenue from $2 billion in 2022 to $300 million in 2024.
Go Deeper -> Oracle reaches $115 mln consumer privacy settlement – Reuters
Oracle coughs up $115M to make privacy case go away – The Register
