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

Facebook Closes 50 Million Dollar Deal for Live Streaming

By: Andrew Bindelglass    6/24/2016

Facebook seems like it is ready to launch a fledgling version of Facebook Live in the near future, Osofsky said. "We have an early beta programm for a…

Read More

Twilio IPO: Bellwether or Blip for the API Business?

By: Doug Mohney    6/23/2016

San Francisco-based Twilio counts Uber, Open Table, and Nordstrom among its customers. In 2015, the company's revenues were around $167 million with a…

Read More

Brexit: The Whole World is Watching! Including Tech

By: Peter Bernstein    6/20/2016

It is hard to imagine a vote on something- even for those of us in the U.S. consumed and amazed by the daily barrage of presidential election year pol…

Read More

How Steve Jobs Would Fix Apple

By: Rob Enderle    6/20/2016

It is hard to see Apple in trouble. It has massive reserves and remains one of the most powerful brands in the market, yet every week seems to contain…

Read More

Twitter Invests $70M in SoundCloud

By: Andrew Bindelglass    6/16/2016

It seems that SoundCloud sees much of the benefit in this partnership with Twitter in the rollout of their new subscription service that is meant to s…

Read More