PayPal reaches consumer protection settlement with Md., other states
Baltimore Business Journal - 2:34 PM EDT Thursday
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PayPal, the dominant online payment company owned by eBay Inc., said Thursday it had signed an agreement with the attorneys general of Maryland and 27 other states to settle a dispute over some of its customer service practices.
San Jose, Calif.-based PayPal said it would shorten and streamline its user agreement and communicate more information regarding its protection programs. The company will pay $1.7 million to Maryland and the 27 other states to cover investigation costs.
Maryland's costs totaled $59,500.
Maryland Attorney General J. Joseph Curran said Thursday he and other attorneys general received complaints from PayPal users that their accounts had been frozen without advance notice. Other users said their bank accounts were debited by PayPal when they expected their credit cards to be charged, and some said they never received refunds for items they had purchased online but never received.
"The consumer has rights, and PayPal must explain those rights," Curran said in a statement.
Under terms of the settlement agreement, PayPal said it is not admitting any liability for the allegations in the dispute.
EBay (NASDAQ: EBAY) acquired PayPal in October 2002. PayPal provides technologies and systems to retailers and other businesses that allow for secure payments via the Internet.
http://www.bizjournals.com/baltimore/stories/2006/09/25/daily36.html
Baltimore Business Journal - 2:34 PM EDT Thursday
Print this Article Email this Article Reprints RSS Feeds Most Viewed Most Emailed
PayPal, the dominant online payment company owned by eBay Inc., said Thursday it had signed an agreement with the attorneys general of Maryland and 27 other states to settle a dispute over some of its customer service practices.
San Jose, Calif.-based PayPal said it would shorten and streamline its user agreement and communicate more information regarding its protection programs. The company will pay $1.7 million to Maryland and the 27 other states to cover investigation costs.
Maryland's costs totaled $59,500.
Maryland Attorney General J. Joseph Curran said Thursday he and other attorneys general received complaints from PayPal users that their accounts had been frozen without advance notice. Other users said their bank accounts were debited by PayPal when they expected their credit cards to be charged, and some said they never received refunds for items they had purchased online but never received.
"The consumer has rights, and PayPal must explain those rights," Curran said in a statement.
Under terms of the settlement agreement, PayPal said it is not admitting any liability for the allegations in the dispute.
EBay (NASDAQ: EBAY) acquired PayPal in October 2002. PayPal provides technologies and systems to retailers and other businesses that allow for secure payments via the Internet.
http://www.bizjournals.com/baltimore/stories/2006/09/25/daily36.html
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