Google updates Workspace terms with new liability cap

In a recent update to its Google Workspace Terms of Service, effective October 16, 2024, Google has introduced a new twist that’s caught the attention of businesses, freelancers, and administrators alike. Section 12.2, known as the “Limitation on Amount of Liability,” now specifies that while Google’s liability for paid services remains capped at the fees paid by customers over the prior 12 months, services provided free of charge will carry a liability limit of $5,000. This seemingly minor addition could have significant implications for millions of Google Workspace users who rely on both paid and free services.

In a nutshell, Google’s liability for damages is now split depending on whether you’re paying for the service or not. Previously, if any issue arose, Google’s liability was capped at the amount customers paid in the past year — simple and straightforward. But now, a new clause clarifies that the liability for free services (such as Gmail and Google Docs for individuals) will be limited to a maximum of $5,000. This update could be particularly relevant for businesses and educational institutions that combine both paid and free tools in their workflow.

Google has also made some other, perhaps less flashy but important, updates to its terms. Here’s a quick roundup:

• Section 1.4 clarifies Google’s notification practices, making it clear when and how users will be informed of any changes.
• Section 9 now explicitly states that no press release or public statement can be made about Google Workspace without mutual consent, protecting both parties from potential PR pitfalls.
• Section 13.3 addresses indemnity exclusions for free services, further defining the boundaries of Google’s responsibilities.

Google Workspace has been buzzing with activity lately, and these changes come on the heels of other big announcements. Earlier this month, it was revealed that Aparna Pappu, Google Workspace’s visionary leader, would be stepping down. She has been pivotal in shaping Workspace’s evolution into a robust platform that supports millions worldwide.

In addition, Google recently introduced Google Vids, a new app “designed to help teams in customer service, learning and development, project ops and marketing tell more engaging stories at work through video” even if they don’t have any video skills.

If you’re a Google Workspace admin, no immediate action is needed on your part. Google assures that the updated terms will apply at your next renewal date, giving you time to review the new details. But it’s worth considering how these terms affect your risk calculations and usage of free vs. paid Workspace services. For most users, these changes might just be a note in the background.