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

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags advertisingInternet-based applications and servicestelecommunicatione-commercepaypalinternet

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

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 News Articles


GGG Evaluation Team

Kathy Cassidy


First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni


For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell


The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi


The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott


My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?