PayPal Clarifies Recent ToS Update



paypal logoPayPal, the ubiquitous money-handling service used by millions of people around the world, came under fire earlier this year after the company posted an update to its terms of service. That update contained language that made it sound like PayPal could (and would) be able to constantly make automated phone calls to its customers. Not surprisingly, people weren’t too happy about the idea of PayPal’s robocalls interrupting their dinner. This news even caught the attention of some lawmakers in Congress.

In a bid to try and reverse the damage caused by this public relations blunder, PayPal sent out an e-mail last week, attempting to clarify the nature of these robocalls:

Unfortunately, some of the language in this update caused confusion and concern with some of our customers about how we may contact you.

To clear up any confusion, we have modified the terms of Section 1.10 of our User Agreement. The new language is intended to make it clear that PayPal primarily uses autodialed or prerecorded calls and texts to:

  • Help detect, investigate and protect our customers from fraud
  • Provide notices to our customers regarding their accounts or account activity
  • Collect a debt owed to us

In addition, the new Section 1.10(a) and 1.10(b) makes it clear that:

  • We will not use autodialed or prerecorded calls or texts to contact our customers for marketing purposes without prior express written consent.¬†Customers can continue to enjoy our products and services without needing to consent to receive autodialed or prerecorded calls or texts
  • Customers can continue to enjoy our products and services without needing to consent to receive autodialed or prerecorded calls or texts
  • We respect our customers’ communications preferences and recognize that their consent is required for certain autodialed and prerecorded calls and texts. Customers may revoke consent to receive these communications by contacting PayPal customer support and informing us of their preferences.

So while these terms do still indicate that PayPal may indeed robocall you, it’ll only happen if they have a specific reason due to problems with your account like potential fraud or to collect a debt. PayPal won’t be calling you to offer new services or upsell you on account upgrades.

Looks like you can relax now if you were planning on adding PayPal’s phone number to your block list.