PayPal · PayPal User Agreement

Mandatory Individual Arbitration and Class Action Waiver

High severity
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Why it matters (compliance & risk perspective)

This clause eliminates your ability to sue PayPal in court and prevents you from joining other affected users in a class action, which is often the only practical way to challenge a large company's systemic practices.

Consumer impact (what this means for users)

PayPal's User Agreement significantly affects your financial rights and access to funds — PayPal can place holds on your money for up to 180 days and limit or suspend your account at its discretion. You waive the right to participate in class action lawsuits and must resolve all disputes through individual binding arbitration, which is generally more costly and less accessible for small-dollar claims. You can opt out of the arbitration agreement by sending a written notice to PayPal's Legal Department at 2211 North First Street, San Jose, CA 95131 within 30 days of first accepting the User Agreement.

How other platforms handle this

Spotify Medium

BY USING THE SPOTIFY SERVICE, YOU AFFIRM THAT YOU ARE 18 YEARS OR OLDER TO ENTER INTO THESE TERMS, OR, IF YOU ARE NOT, THAT YOU ARE 13 YEARS OR OLDER AND HAVE OBTAINED PARENTAL OR GUARDIAN CONSENT TO ENTER INTO THESE TERMS.

Nintendo Medium

The Services may not be used by anyone under the age of 18 without the supervision of a parent or legal guardian who agrees to be bound by these Terms. You represent and warrant that you are at least 18 years of age (or the age of legal majority under applicable law), or, if not, that you have revie...

Meta Medium

These Terms and any dispute arising out of or related to them will be governed by the laws of the State of California, without regard to its conflict of laws provisions. Any legal action or proceeding arising out of or related to these Terms must be brought exclusively in the state or federal courts...

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View original clause language
These terms include an agreement to resolve disputes by arbitration on an individual basis. You agree that you are each giving up the right to go to court... disputes will be resolved by a neutral arbitrator... You also agree that you will not bring or participate in any class action lawsuits.

Provision details

Document information
Document
PayPal User Agreement
Entity
PayPal
Document last updated
April 29, 2026
Tracking information
First tracked
March 6, 2026
Last verified
April 9, 2026
Record ID
CA-P-002287
Document ID
CA-D-00044
Evidence Provenance
Source URL
Wayback Machine
SHA-256
787aedff80f89f2d9da4fd79756bbd226f8a5338c9e19c15b2a2fa0d01f59a90
Verified
✓ Snapshot stored   ✓ Change verified
How to Cite
ConductAtlas Policy Archive
Entity: PayPal | Document: PayPal User Agreement | Record: CA-P-002287
Captured: 2026-03-06 20:26:28 UTC | SHA-256: 787aedff80f89f2d…
URL: https://conductatlas.com/platform/paypal/paypal-user-agreement/mandatory-individual-arbitration-and-class-action-waiver/
Accessed: May 4, 2026
Classification
Severity
High
Categories

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Frequently Asked Questions

What does PayPal's Mandatory Individual Arbitration and Class Action Waiver clause do?

This clause eliminates your ability to sue PayPal in court and prevents you from joining other affected users in a class action, which is often the only practical way to challenge a large company's systemic practices.

How many platforms have this type of clause?

ConductAtlas has identified this type of provision across 4 platforms. See the full comparison.

Is ConductAtlas affiliated with PayPal?

No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by PayPal.