Insights PayPal commits to amending it terms and conditions to fully comply with EU consumer law

In December 2023, PayPal agreed to amend its terms and conditions following dialogue with the European Commission and the Consumer Protection Cooperation Network (“CPC”).  Established under EU Law, the CPC is a network of national consumer protection authorities which tackles breaches of consumer law, such as unfair commercial practices, in a coordinated manner.  The CPC considered that some of PayPal’s terms were difficult to understand and unfair.  PayPal has agreed to implement a number of changes to its User Agreement for consumers including removing the provisions which require consumers to check the compliance with the law (e.g., wording such as  “to the extent permitted by law”), ensuring that consumers understand that they can benefit from the law of their country of residence in case of a dispute, and removing terms which cannot be understood by consumers without further explanations or without verification by consumers (e.g. “merchantability” or “non-infringement”).  The changes will be notified to users on 21 February 2024 and will take effect on 28 May 2024.

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