Google failed in an attempt to stop a lawsuit initiated by a Californian consumer who claims the search giant’s mobile payment service invaded the privacy of users.

Alice Svenson alleges Google failed to honour its written privacy policies in regard to the wallet service, which are supposed to place restrictions on how users’ data is shared. Instead, Svenson claims these were ignored and whenever a user purchased an app in the Play Store, the company shared personal information with the app’s vendor.

“For the reasons discussed below, the motion to dismiss for lack of Article III standing is denied and the motion to dismiss for failure to state a claim is granted in part and denied in part,” said the court.

Google argued that Svenson had not established so-called Article III standing to bring her state law claims for breach of contract, breach of the implied covenant, and unfair competition.

Specifically, Google asserted that Svenson had not established that she suffered any injury that is fairly traceable to Google.

However, US District Judge Beth Labson Freeman decided that Svenson had established facts sufficient to “state a claim for breach of contract, breach of the implied covenant of good faith and fair dealing, and unfair competition, meaning that she has alleged that she suffered damages (“injury in fact”) resulting from Google’s breach of contract, breach of the implied covenant, and unfair competition.”

Google have until 16 April to respond.

The case is being heard in the US District Court for the Northern District of California.