The ACCC is taking legal action against Google over the expanded use of personal data.

The ACCC has launched Federal Court proceedings against Google, alleging that it misled Australian consumers to obtain their consent to expand the scope of personal information that it could collect and combine about consumers’ internet activity, for use by Google.

Google is allegedly using the expanded dataset for targeted advertising and other services.

The ACCC alleges Google misled consumers when it failed to properly inform consumers, and did not gain their explicit informed consent, about its move in 2016 to start combining personal information in consumers’ Google accounts with information about those individuals’ activities on non-Google sites that used Google technology, formerly DoubleClick technology, to display ads.

This meant this data about users’ non-Google online activity became linked to their names and other identifying information held by Google.

Previously, this information had been kept separately from users’ Google accounts, meaning the data was not linked to an individual user.

Google then used this newly combined information to improve the commercial performance of its advertising businesses.

The ACCC also alleges that Google misled consumers about a related change to its privacy policy.

“We are taking this action because we consider Google misled Australian consumers about what it planned to do with large amounts of their personal information, including internet activity on websites not connected to Google,” ACCC Chair Rod Sims said.

“Google significantly increased the scope of information it collected about consumers on a personally identifiable basis. This included potentially very sensitive and private information about their activities on third party websites. It then used this information to serve up highly targeted advertisements without consumers’ express informed consent.

“We allege that Google did not obtain explicit consent from consumers to take this step.

“The use of this new combined information allowed Google to increase significantly the value of its advertising products, from which it generated much higher profits.

“The ACCC considers that consumers effectively pay for Google’s services with their data, so this change introduced by Google increased the ‘price’ of Google’s services, without consumers’ knowledge,” Mr Sims said.