PayPal Does Damage Control Over New User Agreement

PayPal Does Damage Control Over New User Agreement

In an effort to manage an emerging PR crisis, PayPal is letting customers opt out of a certain element of its new service agreement.

The issue comes down to the potential for PayPal customers to receive automated robocalls. The company’s new service agreement indicates that customers must “consent to receive autodialed or prerecorded calls and text messages”, both from PayPal and affiliates “who we have contracted with to assist us in pursuing our rights or performing our obligations under this User Agreement”.

The messaging caused some concern among PayPal customers – enough that the company has now apparently felt compelled to provide an opt-out, letting customers contact customer service to make the request. And it’s worth noting that customers’ suspicions are not unfounded: Just last month PayPal had to pay a massive settlement over its unscrupulous practices in signing up customers.

The timing is unfortunate for PayPal. Just this month the company made major announcements regarding the expansion of its One Touch platform to Canada and the UK, and of its mPayment services in Australia. As it seeks to build its brand in the world of mobile commerce and payments, this kind of publicity is decidedly unwelcome, but the right maneuvering now could allow PayPal to escape more or less unscathed as it continues forward towards organizational independence from parent company eBay.

Source: VentureBeat