Fight for Your Legal Rights Against PayPal

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PayPal and eBay are trying to limit your ability to sue, but you don't have to accept that. Here's how to keep your legal rights.

PayPal is sneakily trying to limit your ability to join future lawsuits against it with an updated user agreement that, of course, almost nobody reads…

Prohibition of Class and Representative Actions and Non-Individualized Relief.

YOU AND PAYPAL AGREE THAT EACH OF US MAY BRING CLAIMS AGAINST THE OTHER ONLY ON AN INDIVIDUAL BASIS AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS OR REPRESENTATIVE ACTION OR PROCEEDING. UNLESS BOTH YOU AND PAYPAL AGREE OTHERWISE, THE ARBITRATOR MAY NOT CONSOLIDATE OR JOIN MORE THAN ONE PERSON’S OR PARTY’S CLAIMS AND MAY NOT OTHERWISE PRESIDE OVER ANY FORM OF A CONSOLIDATED, REPRESENTATIVE, OR CLASS PROCEEDING. ALSO, THE ARBITRATOR MAY AWARD RELIEF (INCLUDING MONETARY, INJUNCTIVE, AND DECLARATORY RELIEF) ONLY IN FAVOR OF THE INDIVIDUAL PARTY SEEKING RELIEF AND ONLY TO THE EXTENT NECESSARY TO PROVIDE RELIEF NECESSITATED BY THAT PARTY’S INDIVIDUAL CLAIM(S). ANY RELIEF AWARDED CANNOT AFFECT OTHER PAYPAL USERS.

eBay is doing the same thing. You can opt out (not agree to this change) by writing a formal letter. But The Consumerist says some people have tried and had their letters rejected because “they were not formatted properly.” So they’re now offering template letters that you can fill out and send to PayPal and eBay. The deadline to mail a letter is Nov. 9 for eBay and Dec. 1 for PayPal.

Stacy Johnson

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