Now you cannot file a class action suit against Paypal. You agreed to that.

Once again, Paypal, an eBay company, proves why monopolies are bad.

In case you haven’t noticed, a new rule went into effect this month. From now on, you cannot participate in a class action suit against Paypal. Why? Because you agreed not to. That’s the change they made in their end-user agreement. The one you cannot negotiate upon or refuse to agree to (unless, of course, you don’t want to sell on eBay).

The idea is that if Paypal makes a mistake (or otherwise harms you) for small amounts, it won’t be worth your while to sue them on your own. Until now, If they made such a mistake against all their users for small amounts, users could have sue dcollectively in a class action. Well, now they cannot. So the road is clear. Shave $1 from each Paypal user and voila – millions of dollars of free money. How many of these users are going to travel to Santa Clara County to sue Paypal? Probably no-one. For one dollar? Perfect solution for a big problem any service provider faces: how to take money from the users without being sued. Kudos Paypal.

What’s the law on this issue? Well, apparently the law is on their side. This summer, AT&T won a case in the US Supreme Court allowing them to do exactly that: add a condition in the agreement forbidding class-action suits against them. Take it or leave it. If you leave it – check the competition (that Paypal doesn’t have), they might have added the same rule.

In case of Paypal – you can opt-out. How? Send them a letter. Yes, a letter. Company that doesn’t even have a proper call-center for customer services, and that its whole business model is on-line operation, wants you to send a letter to their San Jose office. You have until December 1st. Citizenvox have conveniently put a template for you to use, if you’re interested.

Other things you can do:

1. Call your Congressmen to demand they take action against such brutality.

2. Don’t use eBay and Paypal.

Your Little Advisor.

This entry was posted in Banking, Online Sales, Online Shopping, Selling things, Smart Shopping and tagged , , , . Bookmark the permalink.

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