Oracle Corporation has reached a preliminary settlement agreement of spending $115 million as penalty after generating revenue by selling data of customers.
This follows a class-action lawsuit that accused the US-based technology major of invading individuals’ privacy by collecting and selling their personal information without consent. The settlement was filed in federal court in San Francisco on Thursday and is pending judicial approval, Reuters news report said.
The settlement amount of $115 million after selling personal information of customers for generating revenue is negligible considering the fact Oracle reported net income of $8.5 billion on revenue of $50 billion (up 18 percent) during fiscal 2023. Oracle does not reveal how much revenue it makes by selling personal information of users.
Though Oracle has denied any wrongdoing, the lawsuit claimed that the company violated both federal and state privacy laws, along with California’s constitution, by creating unauthorized “digital dossiers” on hundreds of millions of individuals. These dossiers reportedly included detailed data such as online browsing habits, banking activities, gas purchases, dining choices, shopping behavior, and credit card usage.
According to the plaintiffs, Oracle allegedly sold this personal information directly to marketers or through products like ID Graph, which the company promotes as a tool to help marketers provide tailored and personalized experiences for consumers.
Does Oracle sell personal information?
Oracle website says Oracle may process online personal information that may indirectly identify you, as well as offline information that may directly identify you. Oracle obtains data from third party sources, including from advertising agencies, website operators, retail stores, and third-party data providers.
“Your personal information is shared throughout Oracle’s organization and sold or shared to third parties such as Oracle Advertising customers and partners, service providers.
Oracle may share personal information with or sell personal information to the following third parties for a commercial purpose:
Oracle Advertising customers and partners, including digital marketers, ad agencies, web publishers, connected TV providers, demand side platforms, data management platforms, supply-side platforms, and social media networks; and third-party service providers as necessary to perform Oracle Advertising services on behalf of Oracle.
Oracle commitments
The settlement will benefit individuals whose personal information Oracle collected or sold since August 19, 2018. Under the terms of the agreement, Oracle has committed to refraining from collecting user-generated information from the URLs of previously visited websites or from text entered in online forms outside its own platforms.
Among the named plaintiffs are privacy rights advocate Michael Katz-Lacabe and Jennifer Golbeck, a University of Maryland professor specializing in social media and privacy issues. Their legal representation, Lieff Cabraser Heimann & Bernstein, may request up to $28.75 million from the settlement to cover legal fees.
This settlement highlights growing concerns about data privacy in the tech industry and the legal ramifications companies face when handling consumer information.
Baburajan Kizhakedath
