Google Wallet - Net303 policy primer

NET303 Policy Primer

Rosie Cornell

Image retrieved from www.androidguys.com

Terms of Service – Buyer (Australia)

When is the last time you signed up for an online service ….

and you actually read the Terms of Service (TOS) …

in full?

Google’s Terms of Service

To buy a book using Google Books – you must sign up for a Google Wallet account … which also has a TOS that must be accepted to validate your account.

When you buy a book from a book shop … you buy the book – you don’t start a long-term relationship with the bookseller …

With Google Books it’s different, you are entering a legal contract when you accept the TOS (and the Google Wallet TOS that is also required)

If you want the book (because it’s easier to read on your various android devices) then you have to agree to the TOS … sign or go away

so you sign …and you probably didn’t read the TOS at all

The problem is: it’s a contract – legally binding – and you had no say in any of the terms and conditions.

There were no negotiations, it’s all about Google’s rights.

Here are a few problems with the Google Wallet TOS

You authorise Google Wallet to obtain a credit report or to otherwise make any credit or background inquiries as appropriate (Google Wallet, 2013a, section 5.2.12g)

Google Wallet is not a financial institution (Google Wallet, 2013b, section 15)

why should they be allowed to check your credit background?

Google Wallet does not provide credit to you, it is a payment gateway

If your card is no good – the payment is rejected. You don’t let any other retailer do a credit check when you use your credit/debit card to pay for your purchases.

Does this give Google Wallet the right to place a call on your credit file?

Can Google Wallet destroy your credit rating … despite you posing no financial risk to them whatsoever?

Each time there is an enquiry on your credit file it leaves a record – too many enquiries and a lender will see you as a high risk borrower (Home loan experts, n.d.).

This could impact your opportunity to buy a new house or car …or stop you from changing your ISP or telephone carrier!

Then there’s Google Wallet’s reference to The Trades Practices Act 1974

In 2011, the TPA was replaced with The Competition and Consumer Act 2010 (Henderson, 2011).

If Google didn’t get that right about current Australian law … what other flaws are there in the TOS?

Despite mentioning Australian laws in the Australia-specific TOS – any legal case would be heard in California (Google Wallet, 2013b, section 23).

Could any other clauses create a real problem for you?

Remember that Indemnification Clause?

(Google Wallet, 2013b, section 20)

You gave Google a legal pass on any and all legal matters arising out of your use of Google Wallet

So if a legal issue arises, and you want to take court action to resolve it -

You agreed to pay all legal costs; they’ll be hiring the best lawyers and you will get to pay for the privilege (Google Wallet, 2013b, Section 13).

Failing to read a contract before signing is not a justifiable reason to avoid the contract. (Lambiris, 2012, p 46)

A TOS is a legal contract, maybe you really should read all of it before signing?

Going to court is stressful, time-consuming and very expensive – and that’s just in Australia – how much tougher is an international law suit?

References

Android Guys. (n.d.). Google Wallet [Image]. Retrieved from http://www.andoidguys.com

Google Wallet. (2013a) Product Disclosure Statement. Retrieved from https://wallet.google.com/customer/tos/viewdocument.html?family=0.buyertos&gl=AU#SafeHtmlFilter_Buyers_TOS

Google Wallet. (2013b) Terms of Service - Buyer (Australia). Retrieved from https://wallet.google.com/customer/tos/viewdocument.html?family=0.buyertos&gl=AU#SafeHtmlFilter_Buyers_TOS

Henderson, C. (2011) Farewell Trade Practices Act. Welcome Competition and Consumer Act - Consumer Protection - Australia. Retrieved from http://www.mondaq.com/australia/x/121506/Consumer+Trading+Unfair+Trading/Farewell+Trade+Practices+Act+Welcome+Competition+and+Consumer+Act

Home loan experts (n.d.) Credit Enquiries: How Many Is Too Many? Retrieved from http://www.homeloanexperts.com.au/credit-score-home-loan/credit-enquiries/

Lambiris, M. (2012). First Principles of Business Law. Sydney: CCH.