Thinking about getting a subsidized Nexus One? Well, you might want to read on before making a decision. We’re all fairly familiar with ETF (early termination fees); after all, when a carrier subsidizes your mobile phone, and you terminate the contract early, it’s acceptable that they recoup some of the costs of subsidizing the phone. What about Google? Apparently if you terminate your contract with the carrier within your first 120 days of carrier service, you have to pay an ETF to the carrier (which is understandable), but not only that, Google will also charge your credit card a good $350 as an Equipment Recovery Fee. Maybe there’s some sound reasoning behind this, but there’s probably going to be quite a few unhappy customers out there who won’t be amused by this. The terms from Google reads:
“You agree to pay Google an equipment subsidy recovery fee (the “Equipment Recovery Fee”) equal to the difference between the full price of the Nexus handheld device without service plan and the price you paid for the Nexus handheld device if you cancel your wireless plan prior to 120 days of continuous wireless service. For example, if the full price of the Nexus handheld device without service plan was $529 USD and the price you paid for the Nexus handheld device was $179 USD with a service plan, the Equipment Recovery Fee you pay will be $350 USD in the event you cancel within the first 120 days of carrier service. The Equipment Recovery Fee is equal to the line item in your confirmation email setting forth the discount on the full priced Nexus handheld device related to your carrier service plan activiation. You authorize Google to charge the Equipment Recovery Fee directly to your credit card, or other payment method used to purchase the Nexus handheld device, upon cancellation of your wireless plan. You will not be charged the Equipment Recovery Fee if you return your Nexus handheld device to Google within the 14 day Return Policy period as set forth below. You agree that the Equipment Recovery Fee is not a penalty but is for liquidated damages Google will incur as a result of such cancellation. These damages may include, but are not limited to, loss of compensation and administrative costs associated with such cancellation or changing of wireless service provider(s), market changes, and changes in ownership. Please note that the Equipment Recovery Fee is imposed by Google and not your chosen carrier and is in addition to any early termination fees that may be charged by your chosen carrier in connection with termination of your wireless plan prior to fulfillment of your chosen carrier’s service agreement term.”
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