PayPal explains when it will hit you with robocalls

30 Jun 2015 | Author: | No comments yet »

PayPal Backs Down on Controversial New Robocall Policy.

PayPal reversed course Monday on a controversial new policy that would have automatically “opted in” its users to receive robocalls and text messages from the company.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.PayPal is modifying its new user agreement (set to go into effect this week) to “clarify” some terms that initially angered both customers and US lawmakers. 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 provision, set to take effect July 1, would have given PayPal permission to blast users with marketing robocalls and texts, even on numbers not provided by customers. That new rule drew rebukes from New York’s attorney general Eric Schneiderman, four U.S. senators and the Federal Communications Commission, which said PayPal may violate federal law because there appeared to be no clear way to opt out of such calls without dropping PayPal completely. Furthermore, consent to the calls or texts will no longer be required to use the company’s services, according to a press release from Franken’s office. “American consumers have the right to avoid unwanted marketing robocalls, plain and simple,” Franken said in the statement. “PayPal made the right move by clarifying its terms of service, because consumers in Minnesota and around the country shouldn’t be forced into these types of invasive agreements.” That’s a significant turnaround from its previous proposed revisions, which required that all customers agree to accept robocalls if they wanted to keep using PayPal. The calls will otherwise be used primarily to protect customers from fraud, provide notices around account activity and collect debts, the company said.

Schneiderman said he commends the company for “doing the right thing.” More from WSJ.D: And make sure to visit WSJ.D for all of our news, personal tech coverage, analysis and more, and add our XML feed to your favorite reader.

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