"This settlement addresses privacy issues and protects the rights of people whose information was collected without their permission," New York Attorney General Eric Schneiderman said in a statement.
"Consumers have a right to protect their vital personal and financial information from improper and unwanted use by corporations like Google."
The deal obliges Google to destroy the personal information collected as Street View cars roamed the country photographing neighborhoods for the 360 degree street-level images it now provides with its Google maps service.
Google has since stopped collecting the data and has agreed not to do so without notice and consent, the statement said.