Google has settled a lawsuit with the US Federal Trade Commission (FTC) after breaking its own privacy laws with the launch of its Buzz network.

In January 2010, Google launched Buzz, a social networking site aimed at competing with Twitter and Facebook. However, it automatically signed users up and distributed their most common contacts without prior permission from each user. The furore that surrounded the issue and the resultant reluctance to use the service consigned Google Buzz to relative obscurity.

Following the security breach, the FTC launched a legal case against Google for using "deceptive tactics" in violating the privacy laws set out in the US-EU Safe Harbour Framework.
 

'Tough settlement' despite no monetary penalty

FTC Chairman, Jon Leibowitz, told Reuters why his organisation took action against the search engine, saying, "when companies make privacy pledges, they need to honour them. This is a tough settlement that ensures that Google will honour its commitments to customers and build strong privacy protections into all its operations".

There is no monetary penalty for Google, however, Jessica Rich, the Deputy Director of the FTC's Bureau of Consumer Protection told the Huffington Post that the costs involved in hiring an outside auditor to complete the required checks would be a "tough order that will impose substantial costs" on Google.