PayPal Policy Updates

WCO12

WCO12

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As most of us know, PayPal is shiesty and I guess they finally got tired of the Class Action Lawsuits. Knowing that the average PayPal user isn't financially impacted enough to warrant a lawsuit without class action, they decided to write PayPal-favored arbitration into their user agreement. I just received this email from PayPal:

PayPal recently posted a new Policy Update which includes changes to the PayPal User Agreement. The update to the User Agreement is effective November 1, 2012 and contains several changes, including changes that affect how claims you and PayPal have against each other are resolved. You will, with limited exception, be required to submit claims you have against PayPal to binding and final arbitration, unless you opt out of the Agreement to Arbitrate (Section 14.3) by December 1, 2012. Unless you opt out: (1) you will only be permitted to pursue claims against PayPal on an individual basis, not as a plaintiff or class member in any class or representative action or proceeding and (2) you will only be permitted to seek relief (including monetary, injunctive, and declaratory relief) on an individual basis.

You can view this Policy Update by logging in to your PayPal account. To log in to your account, go to https://www.paypal.com and enter your member log in information. Once you are logged in, look at the Notifications section on the top right side of the page for the latest Policy Updates. We encourage you to review the Policy Update to familiarize yourself with all of the changes that have been made.

If you need help logging in, go to our Help Center by clicking the Help link located in the upper right-hand corner of any PayPal page.
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This is their Opt-Out Procedure:

  1. Opt-Out Procedure.

    You can choose to reject this Agreement to Arbitrate ("opt out") by mailing us a written opt-out notice ("Opt-Out Notice"). For new PayPal users, the Opt-Out Notice must be postmarked no later than 30 Days after the date you accept the User Agreement for the first time. If you are already a current PayPal user and previously accepted the User Agreement prior to the introduction of this Agreement to Arbitrate, the Opt-Out Notice must be postmarked no later than December 1, 2012. You must mail the Opt-Out Notice to PayPal, Inc., Attn: Litigation Department, 2211 North First Street, San Jose, CA 95131.

    The Opt-Out Notice must state that you do not agree to this Agreement to Arbitrate and must include your name, address, phone number, and the email address(es) used to log in to the PayPal account(s) to which the opt-out applies. You must sign the Opt-Out Notice for it to be effective. This procedure is the only way you can opt out of the Agreement to Arbitrate. If you opt out of the Agreement to Arbitrate, all other parts of the User Agreement, including all other provisions of Section 14 (Disputes with PayPal), will continue to apply. Opting out of this Agreement to Arbitrate has no effect on any previous, other, or future arbitration agreements that you may have with us.
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In another section they stipulate that all arbitration will happen according to the laws of the State of Delaware, which happens to have very favorable laws for corporations (that's why there are so many Delwarare Corps). I'm unsure where class action lawsuits are judged against PayPal currently.

If you care about such things, you might want to write them to opt out. If you are part of a current class action lawsuit or expect to be part of one of the many upcoming class action lawsuits, you should definitely write them and opt out.
 
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Interesting. Thanks for the heads up, I never got this email? :\
 
It means PayPal wants to make it impossible for users to join together in a class action lawsuit against them, and if you don't want to be barred from doing so then you need to mail them and say so.
 
Just got the email, have been reading all over online to see what it means as I'm not too good with the legal lingo and there haven't been 2 suggestions that match as to what it means.

So far WCO12 take on what it means matches best with my guess.

Any others care to jump in and interpret this?
 
I never received this email, too. Thanks for the heads up.
 
lol this is BS and will never hold up in court. They added that because they're about to get his with a class action lawsuit.
 
I got this e-mail too..didn't know what to make of it at first.
 
PayPal is suffering financially, which is ironic as they've done their share of hurting people by placing holds on their accounts. PayPal is expected to cut about 3% of its workforce, or about 400 people. Story at http://www.zdnet.com/report-paypal-could-be-cutting-up-to-400-jobs-7000005715/

These opt-out policies suck. When a case comes before the courts involving someone or class that has not opted-out, I hope the courts flush the whole policy down the toilet.
 
I wonder if we could have a class action suit against paypal for now allowing class action suits :)
 
I'd be interested to see whether they can actually make this stand up in court, as it looks to me awfully like their reasoning behind the policy is simply "because we say so". A number of users are already reporting that they have received no such email, but Paypal are placing the onus upon users to "opt out". It seems shaky to me, and I'd imagine there would be any number of lawyers very keen to bring a test case against Paypal over this change in policy. I doubt we've heard the last on the issue.
 
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