Paypal New Agreement Hoopla

If your head hasn’t been stuck in the sand lately, I’m sure you will have heard the big fuss being made over Paypal’s new agreement being activated on July 1st, 2015.

Did you know that if you are a Paypal user that you have already agreed to most of what people are objecting to right now?

So why the big fuss?

Most people don’t take the time to read the fine print when signing up for something and since the new agreement has added some amendments to it, Paypal, by law, is obligated to inform its current users to the changes.

These changes are being spelled out and finally, people are taking notice.  Hence, the objections.outraged

Here are some tid bits you may not be aware of.

Ebay owns Ebay and Paypal.

Ebay is now transitioning into two separate companies and wants to keep the accounting separate. It’s really that simple.

But what does this mean to you and why is everyone protesting so loudly?

Issue 1: Robo Calls and Text Messages

The new agreement requires you to give consent to receiving pre-recorded calls and text messages to ANY phone number you have on file with Paypal or any phone number they may have obtained.

That means they can call you with offers and promotions they deem fit.

There are NO opt-out options. You either agree or stop using Paypal and terminate your account.

“IF YOU DO NOT AGREE TO THE AMENDED USER AGREEMENT, PRIVACY POLICY OR ACCEPTABLE USE POLICY, YOU MAY CLOSE YOUR ACCOUNT BEFORE JULY 1, 2015 AND YOU WILL NOT BE BOUND BY THE AMENDED TERMS.”

The Telephone Consumer Protection Act (TCPA) of 1991 created a the DO Not Call List.

This begs the question of whether Paypal is in violation of TCPA regulations.

Because of user outrage,  the FCC sent a letter to Paypal on June 11th, 2015,  stating that it has serious concerns with the position Paypal is taking.

Excerpt from the Paypal Agreement:

You consent to receive autodialed or prerecorded calls and text messages from PayPal at any telephone number that you have provided us or that we have otherwise obtained. We may place such calls or texts to (i) notify you regarding your account; (ii) troubleshoot problems with your account (iii) resolve a dispute; (iv) collect a debt; (v) poll your opinions through surveys or questionnaires, (vii) contact you with offers and promotions; or (viii) as otherwise necessary to service your account or enforce this User Agreement, our policies, applicable law, or any other agreement we may have with you.

If a telephone number provided to us is a mobile telephone number, you consent to receive SMS or text messages at that number. We won’t share your phone number with third parties for their purposes without your consent, but may share your phone numbers with our Affiliates or with our service providers, such as billing or collections companies, who we have contracted with to assist us in pursuing our rights or performing our obligations under this User Agreement, our policies, applicable law, or any other agreement we may have with you. You agree these service providers may also contact you using autodialed or prerecorded calls and text messages, as authorized by us to carry out the purposes we have identified above, and not for their own purposes. Standard telephone minute and text charges may apply if we contact you.

Issue 2: Intellectual Property

The new provisions state that Paypal owns your content.

What does this mean?

It does not mean that Paypal has ownership rights of your content. You are still the owner.  However, it grants Paypal a royalty free licence to use your content should they wish to.

As a merchant, you are also granting Paypal a licence to use your trademark and logo for any purpose they choose to.

People, this was already part of the old agreement!

So what’s really happening?

Simply, Paypal wants to cover its arse.

It is seeking overbroad rights to provide very conservative protection.

They hold total ownership over your content with their current database rights. Period!

Content you post to Paypal could be regenerated in the process of processing transactions.

Similar protection is generally provided in social platforms.

Do you think Paypal will ever exercise these rights?

Probably NOT!

It’s one thing to protect yourself but it’s another to use the content to monetize it.

Paypal already had these rights when you first signed up to use their service!  Have they abused it? No!

So will it be business as usual for you?  Why not!

Paypal has worked splendidly for me so far and I have taken a look at other pay processors. I’m not saying that I will stay with Paypal forever, but for the time being it has served me well.

I would appreciate you sharing this article with your friends. It’s always good to be fully informed.

About the Author Marie Leonard

Marie is a seasoned online coach and marketer helping newcomers save time and money in applying sound internet marketing processes and providing them with versatile tools to ease their lead generation frustrations.

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