GoDaddy Gatekeeping Substitute W9 With Third Party TOS

[accuname]

GD substitute W9 screen is blocked by a third party TOS. You can't access W9 screen unless you accept the Tipalti TOS.

This seems so wrong on so many levels - like irs rules for creating substitue W9, B2B protection, privacy, forced contracts.

My initial post from godaddy reviews section:
https://www.namepros.com/threads/go...tipalti-tos-requirement.1341891/#post-9308461

*What type of law handles this situation?

 

[accuname]

I asked Skynet and got back the following:

The issue you are describing touches on multiple areas of law, and several legal principles could be involved:

1. Tax Law:​

• The W-9 form is a tax document required by the IRS for freelancers or independent contractors to provide their taxpayer identification information (such as Social Security Number or Employer Identification Number). IRS rules govern how companies should collect this information.
• According to the IRS, there are specific requirements for how companies must collect taxpayer information (via a W-9) and what constitutes a valid form. A substitute W-9 should meet IRS standards, but it can't be conditioned on agreeing to unrelated terms (such as a third-party payment processor's terms of service). The IRS does not authorize companies to require unrelated agreements for collecting W-9 information.

In this case, forcing you to agree to a third-party TOS in exchange for submitting a W-9 seems problematic under IRS guidelines, as it could be viewed as conditioning the submission of tax information on an unrelated transaction.

2. Contract Law:​

• Contract law would be relevant in understanding the enforceability of the third-party payment processor's Terms of Service (TOS) and whether you are legally required to agree to them.
• If the company is imposing the TOS as a condition to providing a W-9 form, it may raise concerns about coercion and whether the contract is legally valid, especially if the terms are overly broad or unrelated to the purpose for which you are required to provide the form.
• Duress or unconscionability could also be potential defenses if the terms are deemed unreasonable or unfairly force one party (you, the freelancer) into agreeing to something they would not otherwise choose.

3. Consumer Protection Law:​

• This situation could fall under consumer protection or business practices laws, especially if the company is engaging in unfair or deceptive practices.
• Unfair trade practices laws prohibit companies from engaging in deceptive or coercive tactics. If the company is forcing freelancers to agree to unrelated terms (such as the third-party TOS) in order to access a necessary tax form (the W-9), it could be considered an abuse of their position.
• Class action lawsuits have sometimes been used in consumer protection cases when multiple individuals are affected by similar coercive tactics.

4. Employment Law:​

• While you are freelancing and not an employee, some independent contractor protections may apply in specific states or jurisdictions. Depending on your location, labor laws might provide additional safeguards against being forced into agreements unrelated to the work being performed.

Potential Legal Actions:​

• Filing a complaint with the IRS: You can report this situation to the IRS if you believe the company is not following the correct procedures for W-9 collection.
• Filing a complaint with the Federal Trade Commission (FTC): If the company's actions are seen as unfair or deceptive, you may want to lodge a complaint with the FTC, which handles such matters.
• Consulting with an attorney: For specific advice on whether the third-party TOS can be enforced or if it violates any of your rights, a lawyer specializing in contract law or tax law would be ideal.

In conclusion, your issue is most likely related to tax law, contract law, and consumer protection law, and in some cases, unfair trade practices could be involved. You may want to consult a lawyer for advice on how to proceed with enforcing your rights, but these areas of law provide the main framework for addressing your concern

 

[accuname]

I do have a ba in philosophy. Godaddy is gonna make me go get a law degree to resolved this. LSAT here I come lol. I actually do find contract law interesting though.

This affects all of us as freelancers / independent subcontractors.

Being coerced into a third party contract to access a substitute W9 is a BIG deal.