PayPal tweaks terms in wake of 'robocall' controversy

Express consent from customers will be needed for marketing related calls, PayPal said

PayPal President and incoming CEO Dan Schulman, speaking during an event in San Francisco on May 21, 2015.

PayPal President and incoming CEO Dan Schulman, speaking during an event in San Francisco on May 21, 2015.

PayPal is fine-tuning its policies after a recently announced plan to make unsolicited prerecorded calls and texts to users drew questions and concerns from customers, regulators and consumer advocates.

Earlier this month, PayPal generated controversy when it proposed amendments to its terms that would allow it make unsolicited calls for marketing and other purposes. The Federal Communications Commission told PayPal that the proposed terms, which would go into effect July 1, might violate federal laws because unsolicited robocalls are only legal if a company has obtained written or oral consent from consumers.

On Monday, PayPal said it was modifying the new terms. Under the new terms, customers will have to give the company express written consent before PayPal can place autodialed or prerecorded calls and texts for marketing purposes.

Customers may revoke consent to receive those sorts of calls by contacting PayPal customer support, PayPal said.

Customers will receive an email notifying them of the changes, the company said.

The calls will otherwise be used primarily to protect customers from fraud, provide notices around account activity and collect debts, the company said.

The National Consumer Law Center, a nonprofit consumer advocacy group, had brought their concerns over PayPal's new policy to the FCC. On Monday, Margot Saunders, an attorney at the nonprofit, said she was pleased with PayPal's changes.

The FCC, in a statement, also said PayPal's changes were a significant improvement.

Zach Miners covers social networking, search and general technology news for IDG News Service. Follow Zach on Twitter at @zachminers. Zach's e-mail address is zach_miners@idg.com

Join the PC World newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags advertisingInternet-based applications and servicestelecommunicatione-commercepaypalinternet

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Zach Miners

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Armand Abogado

HP OfficeJet 250 Mobile Printer

Wireless printing from my iPhone was also a handy feature, the whole experience was quick and seamless with no setup requirements - accessed through the default iOS printing menu options.

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?