09-28-2006, 07:10 PM
Quote:Online-payment company PayPal Inc. has agreed to pay $5.2 million to settle separate claims with its customers, Washington state and 27 other states over concerns raised about deceptive business practices.
The Washington Attorney General's Office reported Thursday morning that PayPal -- which is owned by online-auction giant eBay -- agreed to clearly explain conditions and policies before a consumer becomes a PayPal member and each time a customer initiates a transaction...
The agreement with the states does not affect private class-action lawsuits in which PayPal has agreed to provide restitution to consumers...
Quote:Consumers alleged that while engaged in a dispute with PayPal, the company would freeze access to money in their PayPal accounts. Customers who expected to fund a payment through use of credit cards found instead that their bank accounts had been charged directly...
McKenna said the states' agreement requires PayPal to make several changes to its online payment service, including clearly and conspicuously disclosing all contractual terms and financial obligations. When PayPal members prepare to make a purchase, they will be presented with a clear choice whether to pay by credit card, debit card or electronic funds transfer.
The agreement also requires PayPal to provide clear access to Web pages explaining key differences between its in-house dispute resolution program and the rights granted by federal law to consumers who use electronic banking, debit cards and credit cards to make payments and purchases.
full article: http://seattlepi.nwsource.com/local/2868...l28ww.html