Are PayPals Terms of Service Illegal?
Technically, NO. PayPal’s User Agreement is legal and enforceable — unless challenged in court and declared void. It is true that in 2003 a California judge struck down and declared portions of PayPal’s User Agreement as unenforceable. However, PayPal quickly rewrote the User Agreement and made it “legal” again. Second, the 2003 decision ONLY APPLIED TO CALIFORNIA (it was a California state District Court that made the decision). PayPal’s current User Agreement is “legal” and can be used against you. The current User Agreement is what PayPal uses to justify any actions that they take against you. When you clicked “I Agree” to sign up for a PayPal account, you in effect allowed yourself to become subject to PayPal’s User Agreement. This website is not arguing that what is in the User Agreement is fair, right or moral — this website is stating a fact. The fact is, PayPal’s User Agreement is currently legal.