Google will pay $391.5m (£330m) to settle allegations about how it collects data from users.
The technology giant tracked the location of users who opted out of location services on their devices, 40 US states said.
Google has been told to be transparent about location tracking in the future and develop a web page telling people about the data it collects.
It is the largest privacy-related multi-state settlement in US history.
A Google official said: “Consistent with improvements we’ve made in recent years, we have settled this investigation, which was based on outdated product policies that we changed years ago.”