Pay Pal Opt-Out

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The Fair Contracts Opt Out Campaign


Do You Have a Pay Pal Account?


PAY PAL is giving you a limited chance to preserve your right to go to court by opting out from forced arbitration and class action waivers in the fine print.




It only takes a few minutes to send a letter or postcard.


PayPal, one of the largest online-based payment websites, has amended their dispute resolution policies to include a binding arbitration and class action waiver clause in the fine print of their contracts with their customers. It went into effect on November 1, 2012.

Consumers can fight back and opt out:


  1. Send an opt-out notice in writing with the info required to Pay Pal; and

  2. Tell us if you opted out so we can keep in touch with you

for other opt-out options.


Pay Pal is giving current users the chance—but only until December 1—to opt out, and for new users, no later than thirty days after they accept the terms of service for the first time.


If you want to opt out of the forced arbitration and class action waiver provision, you need to send Pay Pal your intent to not accept the Agreement to Arbitrate in writing to Pay Pal Inc., Attn: Litigation Dept., 2211 North First St., San Jose, CA  95131. It must include your name, address, phone number, email addresses linked to your Pay Pal account(s), and signature, with your refusal to agree to the Agreement to Arbitrate. You should keep a copy for your own records.  See Pay Pal’s terms here.


I want to Opt-Out!/”Opt Out Notice”

I do not agree to and want to opt out of Section 14.3 in the PayPal user agreement,  as labeled in the contract the “Agreement to Arbitrate.”

Don’t forget the stamp!

Name:  Pay Pal Inc.
Address:  Attn: Litigation Dept.
Phone:  2211 North First St.
Email address(es) linked to each/specific account(s) I am opting out for:  San Jose, CA 95131





We are providing this sample, but please note this is not intended as legal advice to any individual/account holder.


Also note that you may have to opt out of the arbitration clause again and again in future communications/accounts if they try to do this again because PayPal says: “Opting out of this Agreement to Arbitrate has no effect on any previous, other, or future arbitration agreements that you may have with us.”


Even though Pay Pal does business on-line, they are telling their customers to take out the pen and paper…and write to them, via snail mail – if customers want to opt out.


This is corporate behavior that makes it needlessly difficult to preserve your right to go to court…and we at Fair Contracts are calling it out with Cat Lobster when we find examples of it.


Binding arbitration takes away a consumer’s right to go to court and get heard by a judge. Forced arbitration generally favors corporations over consumers. Pay Pal is changing its terms to force account holders into binding arbitration unless they opt out.


Pay Pal also wants to take away a consumer’s right to bring a class action. A class action waiver makes it impossible for people that all have similar complaints against one company to combine their claims to make it worthwhile to hold a corporation accountable. It can give corporations in general on a pass on potential bad behavior because of the unlikelihood of repercussions given that individuals are unlikely to fight for justice and accountability for low dollar amounts of individual injury.


For additional information, Public Citizen also has Pay Pal’s Opt-Out information which can be found here:’s-forced-arbitration-clause/


Stay tuned for more opt-out opportunities at….


Cat Lobster is on the prowl….


And please don’t forget to let us know if you decide to opt out and want to hear more about Fair Contracts’ Opt-Out Campaign.