Paypal Policy Change

[GM]

I just received this in my email. It outlines that some changes have been made, but when I dropped in on Paypal the documents they mention don't show any change yet. Anyone have any idea what the policy changes will include?

The email I received today:

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PayPal Policy Updates

Dear XXXX XXXX,

You are receiving this email because you have asked to be notified of PayPal policy updates. Please read below to learn about PayPal's recent policy updates.

Acceptable Use Policy Updates

Notice Date: August 23, 2004
Effective Date: September 24, 2004

Revised the introductory paragraph of the Acceptable Use Policy to clarify the intent of the policy. Added the "Gambling" category previously in section 7.2 of the User Agreement, updated the Prescriptions Drugs and Devices policy to require VIPPS (Verified Internet Pharmacy Practice Sites) certification, and clarified wording of Mature Audiences and Lottery policy.


Violating the Acceptable Use Policy

Notice Date: August 23, 2004
Effective Date: September 24, 2004

Violators of the Mature Audiences, Prescription Drugs and Gambling categories of PayPal's Acceptable Use Policy may be subject to a fine of $650.00 CAD and/or PayPal may take legal action against you to recover losses that are in excess of the amount fined.

Sincerely,

PayPal

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This is the way section 7.2 reads at present. But I have no idea what it is being changed to:

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7.2 Restricted Activities. Your Information and your activities (including your payments and receipt of payments) through our Service shall not: (a) ..... ; (d) be related in any way to gambling and/or gaming activities, including but not limited to payment or the acceptance of payments for wagers, gambling debts or gambling winnings, regardless of the location or type of gambling activity (including online and offline casinos, sports wagering and office pools), with the exception of payments for gaming transactions that are expressly authorized by law in the jurisdiction of both the sender and the recipient of the payment;

 

[MadJack]

PayPal to Levy Fines for Gambling, Porn
Fri Sep 10, 2004 05:16 PM ET

By Lisa Baertlein
SAN FRANCISCO (Reuters) - PayPal, the online payments arm of eBay Inc. (EBAY.O: Quote, Profile, Research) , on Friday said it will soon fine people up to $500 for uses related to gambling, adult content or services, and buying or selling prescription drugs from noncertified sellers.

The new policy, which takes effect Sept. 24 and applies to both buyers and sellers, marks the first time PayPal has imposed fines for violations of its use policy, spokeswoman Amanda Pires said.

In addition to fines that could be applied to each violation, PayPal may take legal action to recover losses in excess of the fines, Pires said in an interview.

PayPal processes transactions on the Net and at one time had received almost 10 percent of its revenue from online gambling. But it halted the practice under regulatory pressure after its acquisition by eBay in 2002 and now prohibits the processing of gambling and adult transactions. Now it has decided to enforce that policy with fines.

"What you're seeing here is an evolution of our program. We're trying to deter people who would offer PayPal as a way to pay for anything in these categories," said Pires in an interview.

Under the new policy, prescription drug sellers who do not have Verified Internet Pharmacy Practice Sites certification from the National Association of Boards of Pharmacy, and the people who buy from them, also face fines and possible legal action if they do business using PayPal.

Pires said the changes were not in response to any sort of pressure from regulators.

Eric Jackson, a former PayPal executive and author of the new book "The PayPal Wars," had a different view.

He called the new policy "draconian" and said it was likely a two-fold strategy to discourage certain behavior while heading off regulators.

"I can only surmise that PayPal is coming under increasing regulatory pressure and has no choice at this point but to take an aggressive posture," Jackson said.

"I think they're making an emphatic statement that they're making a clean break from gambling in particular," he said.