PayPal Gets B**** Slapped By The FTC

The flagrant disregard for reasonable disclosure procedures in terms of transaction privacy and funds holds for "investigation", and the practice of sending misleading emails stating that customers "had funds available in their account" that were "available to transfer to their bank accounts" and withholding, suspending or reversing said transactions after the fact finally caught up with them - sort of - through action taken against them (indirectly) by way of a judgement and possible administrative action (criminal investigation) into these exact practices by Venmo (a PayPal Company)

"PayPal Settles FTC Charges that Venmo Failed to Disclose Information to Consumers About the Ability to Transfer Funds and Privacy Settings; Violated Gramm-Leach-Bliley Act"

https://www.ftc.gov/news-events/pre...d-disclose-information?utm_source=govdelivery


Apparently, The possibility of administrative action (criminal proceedings) is open for public comment for 30 days (starting 03/18/18) - this might get interesting...

This has always been a problem, thank God something is finally happening about it. What can come out of this though?

DuckingOutstanding said:

The flagrant disregard for reasonable disclosure procedures in terms of transaction privacy and funds holds for "investigation", and the practice of sending misleading emails stating that customers "had funds available in their account" that were "available to transfer to their bank accounts" and withholding, suspending or reversing said transactions after the fact finally caught up with them - sort of - through action taken against them (indirectly) by way of a judgement and possible administrative action (criminal investigation) into these exact practices by Venmo (a PayPal Company)

"PayPal Settles FTC Charges that Venmo Failed to Disclose Information to Consumers About the Ability to Transfer Funds and Privacy Settings; Violated Gramm-Leach-Bliley Act"

https://www.ftc.gov/news-events/pre...d-disclose-information?utm_source=govdelivery


Apparently, The possibility of administrative action (criminal proceedings) is open for public comment for 30 days (starting 03/18/18) - this might get interesting...

Click to expand...

TIL Venmo is still Paypal's child company..... fml

fuck venmo too now. asshat paypal

So far, from what it says in the linked article on the FTC website, they (Venmo SO FAR) are prohibited from misrepresenting the extent to which consumer info is kept private, they are required to conspicuously disclose any and all possible restrictions to access or limitations of funds to consumers BEFORE receiving any funds from them, and they (venmo) is prohibited from sending the misleading payment/funds avail notice unless it's actually true....Open to possible criminal investigation after a period of 30 Days public comment/input - and the are required to have a third party compliance firm appointed by FTC evaluate their practices and their accounting for twice yearly for the next 10 years.... And they are no longer allowed to claim "bank level security"....

So far, these apply to Venmo - the higher ups at PayPal were the ones with whom the FTC named / held accountable in the investigation... Considering these are all things PayPal does, it only stands to reason that this will end up true for them as much as it is for their child company Venmo (pure conjecture, but makes sense, no?)