What are you really agreeing to when you accept an online TOS? When is the last time you read a TOS and considered if any of those clauses could cause you harm? Despite an online company's best efforts to cause no harm to their users, the all-in nature of generic legal agreements may leave individuals at unforeseen risk.

1. NET303 Policy Primer
Terms of Service – Buyer (Australia)
Rosie Cornell
Image retrieved from www.androidguys.com

2. Google’s Terms of Service

When is the last time you signed up for an
online service ….
and you actually read the Terms of Service
(TOS) …
in full?

3. 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.

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

5. 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)

6. 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

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

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

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

10. Here are a few problems with
the Google Wallet TOS

11. 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)

12. Google Wallet is not a financial
institution (Google Wallet, 2013b, section 15)
why should they be allowed to
check your credit background?

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

14. 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.

15. 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?

16. 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.).

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

18.  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).

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

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

21. Could any other clauses create a
real problem for you?

22.  Remember that
Indemnification Clause?
(Google Wallet, 2013b, section 20)

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

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

25. 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).

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

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

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

29. 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

30. 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+T
rading/Farewell+Trade+Practices+Act+Welcome+Competition+and+Consu
mer+Act
Home loan experts (n.d.) Credit Enquiries: How Many Is Too Many?
Retrieved from http://www.homeloanexperts.com.au/credit-score-homeloan/credit-enquiries/
Lambiris, M. (2012). First Principles of Business Law. Sydney: CCH.