Paypal Policy Update

[AJK]

For those who are unaware:

Dear AJK,
 

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.

Sincerely,

PayPal

I personally will be opting out, and I'd suggest you do as well.

For those who are interested:

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.

[AsherO]

I can't see how this is legally binding. Hopefully it''s like these will-not-sue clauses, and won't hold up in court.

P.s. IANAL

[AJK]

Generally, arbitration clauses hold up.

[AsherO]

Generally, arbitration clauses hold up.

Ugh.

What's in it for these companies? Easier for them to win in arbitration?

[AJK]

C-O-S-T.

Much less with arbitration.

Also, but prevent their users from filing as a class, they avoid large-scale damages.

[TC610]

I personally will be opting out, and I'd suggest you do as well.

Thank you AJK!  I'll be mailing my opt-out today.

[compddd]

Paypal are scum, always have been.

[AJK]

Reminder.

[AsherO]

Reminder.

My guess is only a few people will opt-out, meaning it'll be the end of class actions even if you opt-out (since the class will be very small, the lawyers won't bother).