Users are required to defend, indemnify, and hold harmless PayPal and its affiliates, officers, employees, and agents from claims, damages, fines, penalties, and legal costs arising from the user's use of PayPal services, breach of the agreement, or PayPal's exercise of its rights under the agreement.
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 creates a broad indemnification obligation that includes attorneys' fees and extends to claims arising from PayPal's own exercise of its contractual rights, which is an operationally distinct scope that could expose users to liability for costs associated with PayPal's enforcement actions against them.
Interpretive note: The enforceability of the indemnification obligation for costs arising from PayPal's own exercise of its contractual rights may vary by jurisdiction and may be subject to challenge under applicable consumer protection statutes.
Current version is narrower, specifying indemnification applies only to third-party claims arising from user's breach, improper use, or violations, rather than all claims arising from or related to any proceeding.
View full change record →This new provision shifts significant financial and legal risk to users by requiring them to cover PayPal's defense costs, including attorneys' fees, for any claims arising from user activity.
View full change record →Under this clause, users agree to indemnify PayPal and its affiliates for third-party claims, damages, fines, penalties, and legal costs arising from account use or agreement breach, including costs arising from PayPal's exercise of its own rights under the agreement. This obligation extends to investigations, defenses, and settlements.
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"You agree to defend, indemnify, and hold harmless PayPal, its affiliates, and their respective directors, officers, employees, representatives, and agents (each an "Indemnified Party") from and against any and all claims, damages, losses, costs, investigations, liabilities, judgments, fines, penalties, settlements, interest, and expenses (including attorneys' fees) that directly or indirectly arise from or are related to any claim, suit, action, demand, or proceeding made or brought against any Indemnified Party, or on account of the investigation, defense, or settlement thereof, arising out of or in connection with your use of our services, your breach of this agreement, and/or our exercise of our rights under this agreement.Excerpt from PayPal's User Agreement
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This provision creates a broad indemnification obligation that includes attorneys' fees and extends to claims arising from PayPal's own exercise of its contractual rights, which is an operationally distinct scope that could expose users to liability for costs associated with PayPal's enforcement actions against them.
Under this clause, users agree to indemnify PayPal and its affiliates for third-party claims, damages, fines, penalties, and legal costs arising from account use or agreement breach, including costs arising from PayPal's exercise of its own rights under the agreement. This obligation extends to investigations, defenses, and settlements.
ConductAtlas has identified this type of provision across 228 platforms. See the full comparison.
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