Google LSA terms of service change

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Google changed the terms of service for their 'Local Services Ads' program in the US and Canada. These changes allow Google to collect and analyze phone calls and chat messages between businesses and customers who got in contact via an advertisement.

Background

LSA is a program designed for businesses to advertise their services in the Google search engine as well as Google Maps. Once a business signs up, it will go through a verification process where the necessary licenses, certificates and insurance documents are verified by Google. Following this step, a business may receive a verification check mark and can officially start an ad campaign.

If an ad campaign is started, the respective business will appear higher in Google search results and be marked with the word 'sponsored'. This leads to an increased reach and may attract more customers.

Changes to the Terms of Service of the LSA Program (US & Canada)

As of June 2025, Google requires participating companies to comply with their new terms of service in order to continue advertising via LSA.

One of the most notable additions to the TOS is the right for Google to collect and analyze different types of data from phone calls and text-based conversations between the business and the customer, which are for example, initialized through the click on an LSA advertisement. (This data collection may also occur when other methods of contacting a business through Google are used.)

According to Google, data collection includes but is not limited to photos, service descriptions, special offers, pricing information and discounts.

How it Affects Consumers and Businesses

These changes affect the privacy of businesses and consumers alike due to the fact that is ambiguous what exact data is collected, when it is collected and how it's used by Google. Many fear that data collection might go far beyond what is stated in the TOS and that this data won't just be used to improve Google's algorithms, but also to expand the hidden profiles of Google users with highly sensitive information.

Many businesses in sectors which require confidentiality, such as lawyer services, insurance agencies and medical service providers, can, in theory, not be part of the LSA program anymore. The only options these companies have is to either agree to the new TOS and thereby abandon their duty of confidentiality or to stop using the service entirely, which would leave them at a competitive disadvantage.