Google is facing a class action lawsuit that accuses the tech giant of violating California wiretapping laws by using its AI service, Cloud Contact Center AI, to eavesdrop on customer service calls with Home Depot clients. The complaint was filed by law firms Bursor & Fisher and the Simon Law Firm in the U.S. District Court for the Northern District of California. The lawsuit alleges that Google’s AI product, developed in 2022 to automate and enhance businesses’ customer service interactions, violated Section 631 of the California Invasion of Privacy Act (CIPA).
This section prohibits wiretapping without the consent of all parties involved. Under CIPA, the plaintiffs and class members could potentially be awarded $5,000 per violation. This suit is not the first of its kind.
An earlier version was filed in February 2024 on behalf of the same plaintiff. That earlier attempt also listed Home Depot as a co-defendant, although California’s Northern District dismissed a similar wiretapping claim in June. The lead plaintiff, Christopher Barulich, claims that a major hardware retailer contracted with Google beginning in 2021 to use its Cloud Contact Center AI service to analyze and monitor the retailer’s customer service calls.
Google faces wiretapping accusations
The lawsuit alleges that the calls were recorded and monitored without obtaining authorization from the callers, which is required under California law. The California Invasion of Privacy Act prohibits third parties from monitoring and recording telephone calls without all parties’ consent.
The lawsuit seeks to hold Google accountable for these alleged privacy violations. This lawsuit highlights ongoing concerns about privacy and the use of AI technologies in customer service operations. Both Google and the retailer have yet to comment on the allegations.
The case continues to develop, and its outcome may set a significant precedent for privacy laws in the era of artificial intelligence. The detailed allegations and precedents from similar lawsuits suggest Google could face considerable challenges. As discovery unfolds, Google’s defense of being an agent may not hold.
This is a cautionary tale for companies using AI customer service tools: transparency is paramount. In the age of machine learning, clear disclosure isn’t just an ethical necessity—it’s a crucial component of managing legal risks.
