Binding arbitration policy change/statement

[RedDawgEsq]

I am very confused about the recent policy change/statement about binding arbitration, particularly this statement:

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.

Shouldn't the word "Unless" be "If"?

[RedDawgEsq]

The FTC complaint wizard is at

https://www.ftccomplaintassistant.gov/FTC_Wizard.aspx?lang=en

After you submit a complaint you will receive a "reference number". Be sure to record it (or print out the page.)

Here's my submission. Feel free to wordsmith it as you see fit, or start from scratch, but DO SOMETHING, if only Copy/Paste to the wizard!

PayPal, the Internet electronic payment giant is about to institute a change in its TOS (Terms of Service) that is unfair and forces an undue burden on its customers. By this policy, after November 1, 2012, customers will, by default, have only binding arbitration as a means to resolve any disputes or issues that may arise between them. This means customers will give up their right to sue individually or enter into any sort of class-action suit UNLESS they take positive action to "opt-out" of this impending policy. The onerous part of this is that PayPal has obfuscated the "opt-out" procedure to the point that it is confusing and expensive for individuals to invoke their right to do so. PayPal is not providing any way to complete this opt-out process while on-line, even when customers are already legitimately logged into their accounts securely. The procedure requires customers to send a specifically worded letter with their "opting-out" preference via the US Postal Service to their (PayPal's) mailing address. If customers are confused, understandably, by the process, and do not take this critical step, they will, perhaps unknowingly, give up their means of redress of grievances by all means other than binding arbitration. Prudently, customers will also have to pay, in addition to the normal postage, additional fees for "proof-of-delivery" services, such as Registered or Certified mail, in order to preserve their future rights in resolving disputes. I believe this policy on the part of PayPal to be unconscionable and against public policy, and I hereby request the FTC to intervene with PayPal on behalf of its literally millions of customers world-wide who will be adversely affected by this change in policy.

[Pammay]

Thank you very much.  I just filed a complaint with the FTC using a copy past of your very well worded material.  With you permission, I would also like to post your wording on facebook and twitter.

[vonlost]

The legalese is naturally impossible for a lay person to truly understand, but the "exception" section seems to imply that a court could decide that this new provision is unenforceable. I think this means that one can bring a class-action suit if a court AGREES.

[LouFiorino]

not only are they despicably SLIMY for attempting this via email, but they sent the email from a NON-REPLY address... Needless to say I am posting this HERE as well as REPLYING to the non-reply email... SHAME ON THEM

If you are legally permitted to notify PayPal users of this notice electronically then we, the users, have the option of OPTING OUT of of your ridiculous CLASS ACTION SUIT arbitration clause electronically. I WILL NOT relinquish my rights to participate in any class action suit against PayPal should the need arise and SHAME ON YOU for attempting to recuse yourselves from any such responsibilities in a casual email and then claiming that we, THE USERS, are required to provide you notice IN WRITING that your decision is unacceptable. CONSIDER THIS EMAIL MY DECISION NOT TO ACCEPT YOUR RIDICULOUS STATEMENT!!! I DO NOT AGREE!!! If you perform any actions that could permit a class action suit against you, KNOW THIS... I will certainly be an ACTIVE participant and your attempt to bypass the users rights is an abomination... you should be subject to criminal action for even attempting to get away with this!

IF YOU HAVE ANY QUESTIONS REGARDING MY DECISION OR THE CONTENTS OF THIS EMAIL YOU MUST CONTACT ME BY TELEPHONE WITH MY PHONE NUMBER OF RECORD. If you DO NOT contact me, I will consider it LEGALLY BINDING that you DO UNDERSTAND THAT I WILL NOT RELINQUISH MY RIGHTS.

Once again... SHAME ON YOU ALL!!!

Sincerely (agitated),
L. Fiorino

[AnnRoberts]

I've had it with the corporate bully.  There are other ways to protect internet transactions.  PayPal wants the customer (who has made PayPal a success, btw) to relinquish every legal right they can think of while expecting us to become doormats.  The opt-out option might be nearly impossible to find but to cancel your account is a little easier.  Here's how:

1. My Account

2. Profile

3. My Settings

4. Account Type: Close Account

I'm heading over there right now if anyone wants to join me.

[bobvento]

This is bull**bleep** ...

Opt-Out Procedure.

You can choose to reject this Agreement to Arbitrate ("opt out") by mailing us a written opt-out notice ("Opt-Out Notice").  For new PayPal users, the Opt-Out Notice must be postmarked no later than 30 Days after the date you accept the User Agreement for the first time.  If you are already a current PayPal user and previously accepted the User Agreement prior to the introduction of this Agreement to Arbitrate, the Opt-Out Notice must be postmarked no later than December 1, 2012. You must mail the Opt-Out Notice to PayPal, Inc., Attn: Litigation Department, 2211 North First Street, San Jose, CA 95131.

Why not put a damn Button with the words OPT OUT on it to make it easy for your customers instead of for your lawyers?

[wcburns]

Just another way PayPal has chosen to screw their clients.  Everyone should do what I am doing, PayPal, you're fired.

[ZorkDude]

What a joke. Snail Mail letter ?  Shame on you Paypal.  OPTING OUT SHOULD BE A ONE CLICK PROCESS.  This situation is an embarrassment to mankind.

[ihatethisco]

The only way they'll get the message is if tons of people leave the service. So long as people let them, they'll roll all over their customers. I for one am looking into alternative services. It's time this one got taken down a peg.

[ubrgeek]

Maybe someone there can answer something (although I'm sure clicking the "login" button forced me to agree that no one has to): Is there a legal requirement for people to opt-out in writing or is Paypal just purposefully being difficult? eBay required the same thing. The Electronic Signatures in Global and National Commerce Act says that clicking on a link saying we opt out is legally binding. My only assumption is PayPal (and eBay) are purposefully trying to make it difficult to reject your effort to alienate customers. Just because the court made a ridiculous ruling saying PayPal/eBay _can_ do something doesn't mean you have to show a complete lack of interest in your customers' opinions.