Paypal Just UPdated Policy Today So You Can't Take Party in Class Action LawSuits

C

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Oct 19, 2011
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Got this in an e-mail today. Crazy:

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.
 


Here's the minimum info you need to opt out. Yes, you have to send a snail mail, no electronic way to opt out.
Has to be POSTMARKED by Dec. 1, 2012. I would send it certified.

Code: 
==============================================
Mail To: PayPal, Inc.
Attn: Litigation Department
2211 North First Street
San Jose, CA 95131

Subject: Opt Out Notice
Date: 

To Whom It May Concern,

I do not agree with the Agreement to Arbitrate that was recently 
sent to me, and I wish to opt out.  

Name: 
Address: 
Phone: 
Email address(es): 
[use the email(s) from the Paypal account(s)]

Sincerely,

Your Name Printed Here

___________________ <-- Your Signature

___________________ <-- The Date


=================================================
 
I received the same email at 08/08, your intertubes must be clogged up..

3Z0j0.jpg
 
It's a tad ridiculous that a company can dictate how you voice your grievances. In several industries lawsuits and the threat of lawsuits are pretty much the only thing protecting the consumer.
 
i'm thinking this can't be legal. You're stripping people's ammendment rights to act ........... i would feel ...... what's the point of court / justice system if a business can do this?


btw................ This definitely hit my e-mail today...
 
In the UK, this clause would be immediately struck out under the Unfair Contract Terms Act, certainly for consumers.

I'm sure some US states must have similar legislation.
 
They can write whatever the fuck they want, if it's legal or binding or not is a whole 'nother story, bros ;-)

That's for the courts to decide, and no, they can't really do this and make it stick. Just accept the agreement and move on, it don't mean shit.
 
Or you can use Payza, Liberty Reserve or whatever instead.

I have never had any good experience with Paypal and its security protocol is laughable comparing to other services. The only reason i still use Paypal is because many of my clients and friends do.
 
r3p1v said:
what happens if you opt out? they close your account?
Click to expand...

I think this is the biggest question, and depending on the answer, it may play a large part in determining the legality of what they can do.

IANAL, but I know in some countries these terms aren't worth the paper they're printed on, or the website they're published on as the case may be. However, that probably isn't the case in the U.S.

As I understand it, here in the states contract law allows us to sign away certain "rights" and legal defenses. Signing away the right to our day in court is one of those "rights" we can sign away. In fact, that's what we do every time a settlement is reached outside of the courtroom, be it in criminal or civil pursuits.

How PayPal applies the binding arbitration clause of the agreement will likely determine if this is legal or not. If it's applied like most arbitration and both sides agree upon an arbitrator and the process is not corrupted, it could be legal. In the past I have read legal challenges of similar contract clauses and U.S. courts have ruled both in favor and against the legality of these kind of clauses.

Again, IANAL and I don't know the minor details that would cause the case to swing one way or the other, but given the indecision of the courts in similar cases previously, it seems there is no binding precedent on the matter at this point.

In other words, who the hell knows. I'm sure a PayPal case involving the arb. clause will coming to a courtroom near you soon. When it does, we'll have our answers as far as legality of the clause goes.
 
Oh its definitely legal and enforcable. Just google or bing "forced arbitration". Only way to get rid of it is to get congress to change the law.
 
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