Alphabet's Google Reopens Pixel Phone Reseller Accounts

Alphabet's (GOOGL) Google unit has brought back to life hundreds of user accounts that the technology company had shut down for violating the company's terms of service.

The users had purchased Mountain View, CA-based Google's new Pixel phones, which launched in October, and re-sold them for a profit. The customers all had their devices shipped directly to the same reseller in New Hampshire, a state where there is no sales tax, to be sold at a marked-up price, the Guardian reported.

The technology giant suspended the sellers' accounts en-masse earlier this week after learning that they violated one of Google's terms of service, which states that customers can only buy devices for personal use and are forbidden to commercially resell them.

The ban kept customers from accessing their email, photos, documents or whatever else they had had linked to their Google accounts. One of the resellers called the move a "digital death sentence," the Associated Press reported.

Following mounting complaints, Google reopened many of the banned accounts on Thursday. The company emailed those users who were affected to say that Google "takes violations of our terms very seriously, and we ask that you review relevant terms and product policies to ensure that you understand them," the Guardian noted.

The company added that it could terminate their accounts again if users are found in repeated violation of the company's terms.

Google's Pixel phone sells for a retail price of $649 on Google's website.

Market research firm DigiTimes expects that the company will sell between 3 million and 4 million phones by year's end. In contrast, analysts surveyed by FactSet project that technology company Apple (AAPL) will sell 78 million of its iPhones in the quarter ending in December.

Google and Apple are holdings in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio.Want to be alerted before Cramer buys or sells GOOGL or AAPL? Learn more now.

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