PayPal Changes User Agreement, No Class-Action Suits

[Rydian]

Paypal has changed it's user agreement and policies in an attempt to stop class-action lawsuits.

Unless you opt out: (1) you will only be permitted to pursue claims against PayPal on an individual basis, not as a plaintiff or class member in any class or representative action or proceeding and (2) you will only be permitted to seek relief (including monetary, injunctive, and declaratory relief) on an individual basis.

Source (E-mail Image)

So uh, looks like Paypal's pulling a Sony. I don't think I like this fad.

 

[Qtis]

Ehh.. Not really sure what to make of this. Is it possible to make something like this part of an agreement for a service like Paypal? Not saying that it's the only one available, but that it's the Steam of internet payment if credit cards and other straight payment methods aren't taken into account.

Also as another thing, is there a part in US law (I'd presume it's the one mainly referred to with companies like Paypal) that makes these restrictions possible?

 

[Rydian]

Well Sony already pulled it off with their PSN/SEN agreement change, so I assume if it was illegal they'd have been hit already.
http://news.cnet.com/8301-17938_105-20107825-1/questioning-sonys-new-class-action-waiver/

 

[Gahars]

PayPal? Pfft.

We're enemies now.

 

[nando]

Ebay and Valve and a lot of companies have the same clause. It is now a copy paste most companies use in their contracts and agreements and even for employers.

Even if it is an agreement, it doesn't make it law and at least in California it is considered unfair and courts will allow you to join class actions even if you agreed not to. You are also allowed to waive out of the agreement through mail which, of course, hardly anyone ever will.

 

[Hyro-Sama]

This is silly. How can PayPal just assume they have good judgement when dealing with claims? Thankfully the opt-out option is there so you can file a lawsuit afterwards.

 

[KingVamp]

No class-action lawsuits? Come on guys, let's do a class-action lawsuit on
this!

Anyway, have they face one before?