PayPal Updates User Agreement, Apologizes To Users

eBay Inc EBAY’s soon to be spun off PayPal announced on Monday an update to its User Agreement.

In an open letter to customers, PayPal’s Senior Vice President, General Counsel and Company Secretary, Louise Pentland, explains the reasons behind the change and the terms of the agreement. The executive admits the company did not live up to its customers’ (and its own) standards recently, and apologizes for any confusion caused.

When PayPal informed its clients about upcoming changes to its User Agreement, they used language that “did not clearly communicate” how they intended to contact them, Pentland explains. “Unfortunately, this language caused confusion and concern with some of our customers."

Related Link: Remember When PayPal Went Public 13 Years Ago?

To clear this mix up, the company has once again decided to modify the terms of Section 1.10 of its User Agreement. It is now clear that PayPal “uses autodialed or prerecorded calls and texts” with three main purposes:

1) Helping detect, investigate and protect its customers from fraud.

2) Informing customers about their accounts or account activity.

3) Collecting debt.

Moreover, the amended Agreement tries to make clear that:

1) The company commits not to use autodialed or prerecorded calls or texts to contact clients with marketing purposes, “without prior express written consent.”

2) Customers can continue to use PayPal’s products and services “without needing to consent to receive autodialed or prerecorded calls or texts.”

3) PayPal’s respects its customers’ communications preferences and recognizes that “their consent is required for certain autodialed and prerecorded calls and texts. Customers may revoke consent to receive these communications by contacting PayPal customer support.”