PayPal Users Beware!

Starting November 1st, PayPal will be the latest company to include a clause in its user agreement that would eliminate the right to seek justice in a court room. This clause would force consumers into arbitration. Arbitration can be an effective method of resolving disputes when both parties voluntarily agree to arbitrate a dispute after it arises, but since these clauses are almost always presented on a take-it-or-leave-it basis, people have no choice but to waive their rights.

In addition, PayPal’s clause includes a class action ban which eliminates the only economically feasible remedy available for consumers to hold corporations accountable when widespread wrongdoing occurs.

After November 1st, if millions of consumers are wrongly overcharged $30 by PayPal, they will each individually have to take their claims to arbitration. As most consumers would not have the time or means to do this, PayPal has essentially granted itself immunity from any responsibility for cheating or misleading its own customers.

The growing list of companies using these clauses in the fine print to avoid accountability includes: MicrosoftNetflixMatch.comSony PlayStationMicrosoft X-BoxElectronic Arts, and Dell.