The agreement prohibits users from bringing or participating in class action lawsuits or representative proceedings against PayPal; all claims must be brought individually, and any relief awarded is limited to the individual claimant.
This analysis describes what PayPal's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
This provision limits the procedural mechanisms available to users when asserting claims against PayPal to individual proceedings only, which is a standard feature of consumer arbitration clauses in financial services but one that has received significant regulatory and judicial scrutiny.
⚠ Users who do not opt out of arbitration within 30 days are bound by the class action waiver and may not participate as plaintiffs or class members in any class or representative proceeding against PayPal
Cross-platform context
See how other platforms handle Class Action and Representative Action Waiver and similar clauses.
Compare across platforms →"You and PayPal agree that each of us may bring claims against the other only on an individual basis and not as a plaintiff or class member in any purported class or representative action or proceeding. Unless both you and PayPal agree otherwise, the arbitrator(s) may not consolidate or join more than one person's or party's claims and may not otherwise preside over any form of a consolidated, representative or class proceeding. Also, the arbitrator(s) may award relief (including monetary, injunctive and declaratory relief) only in favor of the individual party seeking relief and only to the extent necessary to provide relief necessitated by that party's individual claim(s). Any relief awarded cannot affect other PayPal customers.Excerpt from PayPal's User Agreement
REGULATORY LANDSCAPE: The CFPB issued a rule in 2017 that would have restricted class action waivers in consumer financial services arbitration agreements; that rule was subsequently invalidated by Congress under the Congressional Review Act.
Enforcement risk, jurisdiction flags, contract triggers, and due diligence action items.
Coinbase's User Agreement includes a mandatory arbitration clause that most users may not have reviewed. Here is what the clause states and how the opt-out process works.
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This provision limits the procedural mechanisms available to users when asserting claims against PayPal to individual proceedings only, which is a standard feature of consumer arbitration clauses in financial services but one that has received significant regulatory and judicial scrutiny.
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