Companies requiring online submittal of government IDs for identification

Is this legal?

I was dreading switching my Nest account to a Google account, but after they increased my annual fees from $300 to $480, I caved in and switched (while I set up a local storage system).
I tried upgrading to the new plan and my payment kept being denied.
Today I received an email asking for further verification on my account. The link requires me to submit copies of my bills and a copy of a government ID …

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