In a landmark action that could change the way many Web companies handle users’ personal information, the Federal Trade Commission charged Google (GOOG) with using deceptive tactics when it launched its social network, Google Buzz, and ordered the company to adopt stringent privacy rules and face independent audits of its practices for the next 20 years.

The ruling is expected to resonate through the social-networking industry, and it is the first time the FTC has ordered an Internet company to implement a comprehensive program to protect consumer information. Although the consent order affects only Google, FTC officials suggested Wednesday that other Internet companies should follow suit.

“When companies make privacy pledges, they need to honor them,” FTC Chairman Jon Leibowitz said in a statement Wednesday. “This is a tough settlement that ensures that Google will honor its commitments to consumers and build strong privacy protections into all of its operations.”

Coming just eight days after a federal judge scuttled Google’s plans to scan all of the world’s published books amid copyright, antitrust and privacy concerns, the FTC action was another blow to the image of a company that built its brand identity in part on the unofficial motto, “Don’t Be Evil.”

“It sends a powerful signal that the country’s most powerful online company deceived the public,” said Jeffrey Chester, executive director of the Center for Digital Democracy, a privacy advocacy group. “For the next 20 years, Google needs a hall monitor, because you really can’t trust it’s going to come clean on privacy.”

‘A clear warning’

The FTC said Google violated its privacy policies by taking personal information it collected when consumers signed up for Gmail and using it for a completely different kind of service — the Buzz social network — without first obtaining permission from users.

Since then, Google says it has already put in place internal controls that make extensive discussions on consumer privacy part of the development of all new products, placing itself in compliance with the FTC order.

Analysts said they don’t see a significant impact on Google’s revenues from the FTC action, but they agreed the landmark move could have significant ramifications for other online social networks, particularly Facebook.

“It is a clear warning to other social-network-type services that even if you think you’ve given yourself headroom in your privacy policy for innovation and new services, you’ve got to be triply sure you’ve considered the perception of that new service from the position of your audience, as well as regulators,” said Ian Glazer, research director for market research firm Gartner’s identity and privacy strategy team.

Privacy as a priority

The federal order won’t result in users seeing changes in Google products. Rather, it is designed to make sure Google develops its software products with consumer privacy in mind, said Mark Eichorn, assistant director of the FTC’s Division of Privacy and Identity Protection.

“Other companies would be well-advised to consider a similar approach, but we’re not requiring that in this instance,” Eichorn said.

Google did not acknowledge breaking the law by agreeing to the consent decree and did not pay a fine.

In a company blog post Wednesday, Google repeated its earlier apologies for “the mistakes” it made with Buzz.

“The launch of Google Buzz fell short of our usual standards for transparency and user control,” the company said. “We are 100 percent focused on ensuring that our new privacy procedures effectively protect the interests of all our users.”

The FTC order

The Buzz social network was based on Google’s popular Gmail service. Although Google led Gmail users to believe that they could choose whether to join Buzz, the FTC charged, the options for declining or leaving the social network were ineffective. For users who joined, the controls for limiting the sharing of their personal information were confusing and difficult to find, the agency contended.

Google also failed to disclose adequately that consumers’ frequent email contacts would become public by default with Buzz, the FTC said. The agency investigated in response to a complaint filed by the Electronic Privacy Information Center in February 2010, shortly after Buzz was launched. Besides the formal complaint by EPIC, there were thousands of complaints from Google users.

In a briefing with journalists last year, Google associate general counsel Mike Yang said there was an extensive internal trial period with Buzz. “This product went through all these checks and more,” Yang said.

Under the FTC order, Google must allow an independent review of its privacy procedures every two years for the next two decades, and must ask users to provide “affirmative consent” before Google makes any changes to how it shares their personal information. Google faces a penalty of up to $16,000 for each violation of the order.

The FTC order “is the most far-reaching; it has the greatest impact, we think, and it will provide the best hope for raising the bar for online privacy,” said Marc Rotenberg, executive director of EPIC. And because of the company’s clout, “it’s significant that it’s directed toward Google.”

Contact Mike Swift at 408-271-3648. Follow him at Twitter.com/swiftstories.