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PayPal has been emailing all users to notify them as follows:
Dear _________,
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 Send Money, Pay Online or Set Up a Merchant Account - PayPal 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
Based on experience with numerous clients, you will get nowhere with these arbitrators, who are generally in PayPal's pockets and tend to side with PayPal always. Why? Well, partly because guess who has set up the arbitration program - PayPal! So, wouldn't you tend to side with whoever is paying your salary?
PayPal was in fact sued successfully over this mandatory arbitration, such that at least in California no one was required to go to arbitration any longer over every little PayPal dispute. The cost of arbitration, which was being forced to occur in California, was very high compared to filing a local lawsuit, so this mandatory arbitration was dissuading people from pursuing their PayPal claims.
Obviously with this new notice, PayPal is trying to make arbitration mandatory - and throw all class actions out the window.
So the question becomes: should you Opt Out of this clause? On a legal level - yes! of course, but...wait a minute before you push that button. Knowing unfair PayPal, it is likely that doing this will immediately throw your account into scrutiny, and PayPal may even boot you soon after you Opt Out to avoid you as a potential troublemaker.
So, just think about this before you Opt Out, and consult with me privately if you have any questions. Sometimes, flying under the radar is best. Good luck.
Dear _________,
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 Send Money, Pay Online or Set Up a Merchant Account - PayPal 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
Based on experience with numerous clients, you will get nowhere with these arbitrators, who are generally in PayPal's pockets and tend to side with PayPal always. Why? Well, partly because guess who has set up the arbitration program - PayPal! So, wouldn't you tend to side with whoever is paying your salary?
PayPal was in fact sued successfully over this mandatory arbitration, such that at least in California no one was required to go to arbitration any longer over every little PayPal dispute. The cost of arbitration, which was being forced to occur in California, was very high compared to filing a local lawsuit, so this mandatory arbitration was dissuading people from pursuing their PayPal claims.
Obviously with this new notice, PayPal is trying to make arbitration mandatory - and throw all class actions out the window.
So the question becomes: should you Opt Out of this clause? On a legal level - yes! of course, but...wait a minute before you push that button. Knowing unfair PayPal, it is likely that doing this will immediately throw your account into scrutiny, and PayPal may even boot you soon after you Opt Out to avoid you as a potential troublemaker.
So, just think about this before you Opt Out, and consult with me privately if you have any questions. Sometimes, flying under the radar is best. Good luck.