Look this one up. It's slightly amusing from a tech standpoint.
Basically a new phone comes out, in this case the Google pixel. Nice phone by the way.
People that make money reselling things such as phones that have limited amounts when produced, take a gamble from time to time purchase the new limited production phone and then sale them through clearing houses. Read online seedy pawnshop. But to make a profit they have to act in bulk and usually buy in one state and sale in another. Why's that you ask? Well get there in a moment.
Google does delete spoof accounts that use odd sale houses, because Google's terms of service prohibits making profit off of tax loopholes, for example:
Let's say you can buy with no tax 30 pixel phones, at 649.99 which is what Verizon list their price at if you purchase outright no specials;
Your phone purchase today is: $19,499.70
That's a lot of money, but wait don't forget uncle SAM's part!
Which would be a total for KY: $1169.98
Total is after tax in ky $20669.68
Now what if you paid in another state?
Your tax total today with Tennessee sales tax of 9% is $1754.97
Total after tax in TN is $21,254.67
Just with buying in one state vs another one could affect 584.99 in taxes on just 30 phones.
Wait why did Shane use Tennessee? Ahhh, because I'm about to teach you something.
Here is what Google doesn't want to happen.
In Ky sales tax is 6 percent. The bill would be a little less:. $20669.68
Which is a 584 dollar difference.
See the loophole that could be used? Businesses or people based in one state could purchase inventory and move it still making money even ifnot official resale agents.
If a person was the type to scheme like a 1940's Chicago mob boss I'd tell Vino, Luke, and Ugly Bob (which has the face of an angel) to go buy me as many as you can. Think by the truckload not case load.
These guys don't pay tax, but if you had tax exempt status you could save 39.999 dollars per phone on ditching tax, and resale elsewhere.
A week later three semi trucks come back. VINO IS TIRED. Anyway quick generalization of probability and statistics:. 3 trailers times 24 pallets time 512 phones. 36,864 pixel phones are now missing in action. Purchased on the sly or fake in our scenario. Now the tax bill on that? It will make you look twice.
$2,156,510.82 in taxes not paid. Yeap still using Tennessee as tax example.
So our Chicago crime Boss of the 40's has to "launder" the phones. What would he do? Sale them out right? Nope. Some would set up dummy accounts for each phone then wipe the phone with a factory reset then push them through the clearing house, again read shady online pawnshop.
Google is hip to what could happen and keeps things in place to
protect us from our fictional crime Boss that would have made over 2 million on the top and then also the amount from the supply and demand price of inflation due to shorting Google's supply. Because really do you think he would have stopped with three semi truck loads?
Basically Google deletes what they red flag as fake profiles used from activation on their servers. And I mean every bit of them.
Imagine photos, contacts, movies, digital purchases all *poof* gone - - bye.
This happened to actual people.
Don't try to rip off Google and the government and you don't have to worry about this!
So why the long explanation with paraphrasing and liberties?
Simple. Social media has ran with this story saying Google is deleting people left and right, digitally executing them.
There were a few real people that didn't like the pixel and sold it, then got suspended and deleted however after following Google's verification process, and proving identity, they found out who they used to sale their phone is known for such things.. shady online pawnshop ;) and their profiles were restored saving the day!