“In no event shall PayPal be liable for lost profits or any special, incidental or consequential damages...arising out of or in connection with our websites, software, systems...or 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
This exclusion significantly limits the types of damages a user can recover from PayPal, removing the most financially significant categories of harm.
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 you suffer lost profits or special, incidental, or consequential damages connected to PayPal's websites, software, systems, or the user agreement, you cannot recover those damages from PayPal.
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OPENAI'S AFFILIATES, SUPPLIERS, LICENSORS, AND DISTRIBUTORS ARE INTENDED THIRD PARTY BENEFICIARIES OF THIS SECTION.
These rights are not absolute and they may be limited in some situations. For example, where we can demonstrate that we have a legal requirement to process your data...
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"In no event shall PayPal be liable for lost profits or any special, incidental or consequential damages...arising out of or in connection with our websites, software, systems...or this user agreement.Excerpt from PayPal's User Agreement
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This exclusion significantly limits the types of damages a user can recover from PayPal, removing the most financially significant categories of harm.
If you suffer lost profits or special, incidental, or consequential damages connected to PayPal's websites, software, systems, or the user agreement, you cannot recover those damages from PayPal.
ConductAtlas has identified this type of provision across 281 platforms. See the full comparison.
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