Judge dismisses Google AI call-recording claims, gives callers another chance

A federal judge has dismissed three Home Depot callers’ claims that Google unlawfully listened to customer-service calls through its AI system. The October 22, 2026 ruling gives them another chance to plead their case—but requires facts showing Google intended to listen without consent. Three other callers must take their claims to individual arbitration.

From customer support to alleged eavesdropping

The proposed class action, In re Google Cloud Contact Center AI Privacy Litigation, challenges Google’s role as an alleged unauthorized third-party listener under the California Invasion of Privacy Act. Google disputes the claims.

According to the complaint as summarized by the court, Google’s virtual agent answers calls without identifying its Google affiliation. It transfers callers requesting a person to a human employee, but allegedly keeps listening and supplying transcripts and suggested replies. The complaint also alleges Google can use recordings to improve its own AI models.

That alleged capability helped the case survive a dismissal motion in February 2025. But at an October 13, 2026 hearing in San Francisco, Judge Rita F. Lin questioned whether the wiretapping law covered the alleged recordings, Bloomberg Law reported.

Consent and intent split the Home Depot claims

Lin held that callers must plead lack of consent. Two Home Depot callers had accounts covered by a privacy statement disclosing customer-care recordings and their possible disclosure to service providers—a category the court found included Google.

The court said using the calls for Google’s own purposes, including AI training, did not change that conclusion because the initial collection fell within the consent given. A third caller, who lacked an account, plausibly alleged he had not consented. But all three claims failed on intent: the complaint offered conclusions, not supporting facts.

Google argued its contract required Home Depot to obtain consent. Lin treated that requirement as relevant, but not an automatic shield from liability. She left room for an amended complaint alleging, for example, that Google knew consent was not being obtained—not a finding that it had such knowledge.

Arbitration for three callers, a deadline for the rest

The separate arbitration order covers callers involving Verizon, Uber and Discover. Although Google had not signed their customer agreements, the court allowed it to enforce their arbitration clauses because the claims depended on the companies’ privacy policies. Their court proceedings are paused while arbitration proceeds.

The Home Depot callers have until November 12, 2026 to amend. Without a revised complaint by that deadline, their claims remain dismissed with prejudice, ending those claims.