Skip to main content

Web Lawyer: PayPal Fraud – New Policy Will Help

By July 28, 2009July 16th, 2010Website Lawyer

web-lawyer-paypal-fraudIn June, PayPal.com amended its acceptable use policy to state:

Prohibited Activities. You may not use the PayPal service for activities that:

“4. involve the sales of products or services identified by government agencies to have a high likelihood of being fraudulent”

As a Web lawyer, I believe this provides PayPal with a lot of discretion because both the U.S. Federal Trade Commission (FTC) and state attorneys general are constantly identifying products and services that have a high likelihood of being fraudulent and deceptive online business opportunities.

If you see an unethical Internet marketer selling a bogus  info product online and using PayPal for payment, a quick note to PayPal about it that refers to the new acceptable use policy should be enough to get an investigation started at a minimum and probably get the account closed if the product is similar to something a government agency has already nailed for fraud. If you’re unsure, send a note to your Web lawyer.

To your success!

-Mike the Web lawyer

Mike Young, Esq.

Author Mike Young, Esq.

Mike Young has been practicing business and technology law since 1994 and is an angel investor in startups. He's been an entrepreneur since 1988. To get legal help from Attorney Young, click here now or call 214-546-4247 to schedule a phone consultation.

More posts by Mike Young, Esq.