Business, Technology Security

PayPal Changes Terms & Conditions, Bans Class Action Suits

Over the past couple of months, we have witnessed a sea of changes to Terms & Conditions of online services. The list of companies that changed their User Agreements and EULA’s (End User License Agreement) goes for miles, and it was all sparked from a 2010 Supreme Court decision in the feud between AT&T Mobility, LLC and Concepcion family.

The result of this 5-4 decision means a free pass to companies which previously were always under the threat of a class action suit, which can drag for years and results in pennies for the dollar, while the legal side of the argument earns upwards of 50% of the settlement value.

The latest company to change their User Agreement is PayPal. The company sent an email update to the millions of its users with the following content:

Notice of Policy Updates


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 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.



If you agree with this change, you can continue using PayPal… if not, you can start searching for another digital payment provider.