Monday, September 6, 2010

Buzz Lawsuit to cost google $8.5 million

Tej Kohli IT updates...

Google agrees to Pay $8.5m to settle a Lawsuit brought over their social networking tool Buzz.

Launched in February this year, Buzz automatically enrolled all Gmail users into a social network based around their contacts.

Initially, the service didn't receive any good reviews due to users having little control over who could see or not see their network of contacts.

Many Gmail users took google to court over Buzz claiming that the network violated their privacy.

The lumpsum is at the centre of Google proposed settlement of the legal case, out of which 30% will cover the cost of legal fee , the seven Gmail users who filed the lawsuit will get $2,500 each and the remained will be split among organizations that promote online privacy.

The settlement also requires Google to do more to educate people about the privacy aspects of Buzz. The settlement has yet to win approval from the federal judge overseeing the case.

The initial rash of complaints about Buzz forced Google to bring in changes that made it an opt-in service and gave users control over who they maintain contact with.

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