PayPal Downsizes, Lawsuits Much Harder for Disgruntled Customers

By Ed Silverstein October 29, 2012

PayPal, owned by eBay, is making it much harder for disgruntled consumers to sue the company.

In an update to the PayPal User Agreement, users will basically be able to submit claims against PayPal to binding and final arbitration.

Users may opt out of the arbitrate section of the agreement by Dec. 1, 2012. Otherwise, they can “pursue claims against PayPal on an individual basis, not as a plaintiff or class member in any class or representative action or proceeding and … will only be permitted to seek relief (including monetary, injunctive, and declaratory relief) on an individual basis,” according to an e-mail recently sent to PayPal users.

The update to the agreement is effective Nov. 1, and is similar to what many other companies are doing to avoid costly jury trials. On Aug. 31, 2012, for instance, Microsoft told many of its customers it will be much harder to sue Microsoft or join in a class action lawsuit against the company.

Microsoft added a class action waiver and binding arbitration clause to its customer service agreement, the company said in August, TechZone360 reported.

In other recent company news, PayPal is cutting about 325 jobs in a company reorganization, according to a recent statement. The 325 employees are mostly in the product and technology business units. As part of the reorganization, PayPal will cut about 120 contractors, as well.

PayPal has over 117 million active accounts.

In addition, according to Reuters, the reorganization will have PayPal combining nine product-development groups into one.




Edited by Braden Becker

TechZone360 Contributor

SHARE THIS ARTICLE
Related Articles

Popularity of Voice Recognition Gadgets Highlights Need for Speech Analytics

By: Kayla Matthews    6/21/2017

Voice-activated personal assistant platforms such as Amazon's Alexa continue to grow in popularity, making lives easier in all sorts of ways. As such …

Read More

Can Machine Learning Defuse the Ticking Time Bomb of Open Recalls?

By: Special Guest    6/20/2017

Did you know that 150 million vehicles have been recalled in the USA since 2014? That's 38 percent of all the cars in America. And, according to Recal…

Read More

Technology and Ties: 5 Reasons Gen X is Taking Over in Business

By: Special Guest    6/20/2017

The generational clash in the workplace between Millennials and Baby Boomers gets all the hype. It reminds me of the debate over who would win - Muham…

Read More

For Amazon-Whole Foods' Future, Look to Zappos, Not Robots

By: Doug Mohney    6/19/2017

Amazon's bid for Whole Foods is obvious and brilliant. There's a lot of crazy talk about how Whole Foods will get turned into people-less stores like …

Read More

Know the Rules and Tools for Stronger Financial Services Cybersecurity

By: Special Guest    6/19/2017

How can cybersecurity solutions help financial services organizations meet requirements and stay compliant? Let's take a closer look at some of the ex…

Read More