“You agree to defend, indemnify and hold PayPal harmless from any claim or demand (including reasonable legal fees) made or incurred by any third party due to or arising out of your breach of this user 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
Users bear financial responsibility for PayPal's legal costs and third-party claims that result from their breach of the agreement, which can be substantial.
The updated terms establish mandatory arbitration for most disputes, including those arising before or after the agreement, and add explicit class action and jury trial waivers. Under the revised language, disputes must proceed through individual arbitration rather than court litigation, and users waive the right to participate in class actions. The agreement requires a 60-day informal resolution attempt before arbitration begins and imposes detailed Notice of Dispute requirements, including original handwritten signatures and identity verification. You can opt out of arbitration by sending a written notice postmarked within 30 days of first accepting the agreement.
View change record →If a third party makes a claim against PayPal arising from your breach of the user agreement, you are required to defend PayPal and cover costs including reasonable legal fees.
How other platforms handle this
In the event you are required to indemnify us pursuant to this Agreement or any court rulings, you must secure all necessary approvals and consents from regulatory authorities for the remittance of any indemnified amount to us.
A party's obligations to defend a Claim Against Customer or a Claim Against Smartsheet...are conditioned on the other party: (a) providing timely written notice of the Claim to the defending party
If required by applicable law, Section 10 (Indemnification) of the Terms does not apply if you are not responsible (with at least slight negligence) for the indemnified event, breach or damage.
"You agree to defend, indemnify and hold PayPal harmless from any claim or demand (including reasonable legal fees) made or incurred by any third party due to or arising out of your breach of this user agreement...Excerpt from PayPal's User Agreement
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Users bear financial responsibility for PayPal's legal costs and third-party claims that result from their breach of the agreement, which can be substantial.
If a third party makes a claim against PayPal arising from your breach of the user agreement, you are required to defend PayPal and cover costs including reasonable legal fees.
ConductAtlas has identified this type of provision across 224 platforms. See the full comparison.
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