BottomBounce
2 days ago
PayPal is facing multiple class-action lawsuits, including allegations of anti-competitive practices, "stealing" commissions from influencers through its Honey extension, and failing to properly secure customer data.
Here's a breakdown of the key lawsuits and allegations:
Anticompetitive Practices & Higher Prices:
A class-action lawsuit alleges that PayPal's "anti-steering rules" prevent merchants from offering lower prices for transactions using alternative payment methods, forcing consumers to pay more.
These rules, according to the lawsuit, stifle competition from lower-cost payment platforms like Stripe and Shopify.
The lawsuit claims that PayPal's practices lead to consumers paying excess charges annually.
"Stealing" Commissions from Influencers:
A class-action lawsuit alleges that PayPal's Honey browser extension, which was acquired in 2020, replaces the affiliate marketer's cookie with its own, taking credit for the sale and the resulting commission.
The suit claims that Honey does this even if it doesn't find a coupon, or when a consumer activates PayPal Rewards, essentially "swooping in at checkout" and diverting commissions.
This has led to allegations that PayPal is "poaching" influencers' sponsorship and sales commissions.
Data Breach & Security Failures:
A separate class-action lawsuit alleges that PayPal failed to properly safeguard and secure the sensitive personal information of its customers during a December 2022 data breach.
The New York State Department of Financial Services announced that PayPal will pay a $2 million penalty for violations of its Cybersecurity Regulation.
Other Lawsuits:
A venture capitalist sued PayPal, alleging racial bias in a funding program for minority startups.
A class action lawsuit alleges that PayPal failed to provide customers with monthly account statements and error-resolution notices as required by the Electronic Fund Transfer Act.
GamersNexus filed a class action lawsuit against PayPal and Honey, alleging conversion, tortious interference with contract, and unfair and deceptive trade practices. $PYPL
BottomBounce
2 weeks ago
Do your DD before investing into Paypal. $PYPL here's another one, there are sooooo many complaints against this company.
"PayPal is disgusting
Why aren't there any class action lawsuits agains this entity? They literally hold hundreds of thousands of accounts hostage, earn interest on the money by locking user accounts for weeks, months.
At the time of registration, you provide with your full name, associated bank accounts, email, phone number etc.
Then all of a sudden, PayPal locks your funds due to "suspicious activity" and asks for a bunch of personal IDs and documentations they're not supposed to have in first place.
Account impact
Pay using PayPal (inactive)
Refund money to customers (inactive)
Send money or payments (inactive)
Withdraw money from PayPal (inactive)
Receive money or payments (this one's active as they want more of your money).
What is this scam and why are they still operating?" https://www.reddit.com/r/Entrepreneur/comments/r75ju8/paypal_is_disgusting/
eastunder
10 months ago
PayPal Announces New Leaders to Build New Advertising Platform and Accelerate Consumer Product Innovation
NEWS PROVIDED BY
PayPal Holdings, Inc.
May 28, 2024, 08:00 ET
https://www.prnewswire.com/news-releases/paypal-announces-new-leaders-to-build-new-advertising-platform-and-accelerate-consumer-product-innovation-302156174.html
SAN JOSE, Calif., May 28, 2024 /PRNewswire/ -- PayPal Holdings, Inc. (NASDAQ: PYPL) today announced new leadership appointments that will drive the creation of a new advertising platform and strengthen the company's consumer value proposition. Mark Grether will join on May 28 as SVP, General Manager, PayPal Ads, and John Anderson has joined as SVP, General Manager, Consumer Group. Grether and Anderson will report to Diego Scotti, EVP, General Manager, Consumer Group and Global Marketing & Communications.
Advertising Platform
PayPal's long-standing relationships with millions of consumers and merchants make the company uniquely positioned to create an advertising platform that is rooted in commerce. Grether will join the company to build an advertising business that will help make merchants smarter to sell more products and services effectively, as well as enable consumers to discover more of what they love. The advertising business, which will include PayPal advanced offers platform, will use customer insights to build a dynamic, truly personalized platform that will drive better advertising spend performance for merchants while delighting consumers with compelling offers.
Grether has been a leader in the advertising industry for more than 20 years. He joins PayPal from Uber, where he was the Vice President, General Manager of Uber Advertising. Under his leadership, Uber Advertising grew to a $1 billion business with more than 500,000 advertisers globally. He successfully led the acceleration of the company's global advertising business, helping merchants, brands, and other advertisers reach Uber's highly engaged user base across its Mobility and Delivery divisions. Prior to Uber, Grether led the product strategy for Amazon's advertising business, and he served as CEO of Sizmek, one of the largest independent advertising platforms globally, which was sold to Amazon in 2019. Prior to Sizmek, Mark was the co-founder and global COO of WPP's Xaxis, which became a leading programmatic media company.
"Commerce and advertising are deeply connected, and we believe that the advertising platform we are building at PayPal will become a must-use marketing channel for merchants big and small. I'm thrilled to have Mark join our team and lead this important work," said Scotti.
Consumer Business
Anderson has spent over 20 years at the intersection of technology platforms and payments. He will be accountable for PayPal's consumer business, including product strategy for PayPal and Venmo globally. Anderson joins PayPal from Plaid, where he was Head of Product and Payments and oversaw significant growth of Plaid's payment product suite. Prior to Plaid, John spent a decade at Meta in numerous product and leadership roles, including Head of Product for Oculus, Head of Facebook Japan, and Head of product and operations teams for Payments, Commerce, and Risk. Prior to joining Meta, John founded GroupCard, a social greeting and payments platform that was acquired by InComm.
"John brings strong experience in developing groundbreaking, personalized consumer experiences to PayPal, which will drive relevance of our brands, fuel our innovation pipeline, and give more reasons for consumers and merchants to choose PayPal," said Scotti.
About PayPal
PayPal has been revolutionizing commerce globally for more than 25 years. The company creates innovative experiences that make moving money, selling, and shopping simple, personalized, and secure. PayPal empowers consumers and businesses in approximately 200 markets to join and thrive in the global economy. For more information, visit https://www.paypal.com, https://about.pypl.com/ and https://investor.pypl.com/.