Is PayPal ethical?

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Community investment Confirmed In favor

PayPal announces $530 million for Black businesses

PayPal announces a $530 million commitment to support Black businesses and strengthen minority communities.

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sponsored.bloomberg.com
In June 2020, as the country grappled with the civil unrest that followed the death of George Floyd, Breonna Taylor and others, PayPal CEO Dan Schulman said that the company wouldn’t simply condemn racism, but would also take steps in the fight for racial equality, including a $535 million commitment to help Black- and minority-owned businesses and communities.
justice.gov
See Press Release: PayPal Announces $530 Million Commitment to Support Black Businesses, Strengthen Minority Communities and Fight Economic Inequality - Jun 11, 2020.

Corporate conduct Allegation Against

PayPal is accused of defrauding Merchants through cookie stuffing

PayPal is accused of defrauding Merchants through cookie stuffing by surreptitiously redirecting Affiliate Commissions rightfully owed to Plaintiffs under the contracts.

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courthousenews.com
Plaintiffs allege that PayPal through Honey has intentionally interfered with their contractual relationships with Merchants and Affiliate Networks and has surreptitiously redirected for itself Affiliate Commissions rightfully owed to Plaintiffs under the contracts by “cookie stuffing,” i.e., defrauding Merchants and Affiliate Networks to receive credit for purchases for which it did not actively perform any marketing as set forth by the parties’ contracts.

Privacy & surveillance Settlement Against

PayPal settles over Venmo privacy and transfer misrepresentations

The Federal Trade Commission approved a settlement with PayPal over allegations that Venmo misled consumers about transferring funds to bank accounts and controlling transaction privacy.

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ftc.gov
PRESS RELEASE: PayPal Settles FTC Charges that Venmo Failed to Disclose Information to Consumers About the Ability to Transfer Funds and Privacy Settings; Violated Gramm-Leach-Bliley Act
ftc.gov
The Federal Trade Commission has reached a settlement with PayPal, Inc. over allegations that the company told users of its Venmo peer-to-peer payment service that money credited to their Venmo balances could be transferred to external bank accounts without adequately disclosing that the transactions were still subject to review and that funds could be frozen or removed.
PayPal Settles FTC Charges that Venmo Failed to Disclose Information to Consumers About the Ability to Transfer Funds and Privacy Settings; Violated Gramm-Leach-Bliley Act | Federal Trade Commission
PayPal Settles FTC Charges that Venmo Failed to Disclose Information to Consumers About the Ability to Transfer Funds and Privacy Settings; Violated Gramm-Leach-Bliley Act
ftc.gov
PayPal Settles FTC Charges that Venmo Failed to Disclose Information to Consumers About the Ability to Transfer Funds and Privacy Settings; Violated Gramm-Leach-Bliley Act
The Federal Trade Commission has given final approval to a settlement with PayPal, Inc. over allegations that its Venmo peer-to-peer payment service misled consumers about their ability to transfer funds to external bank accounts and control the privacy of their Venmo transactions.

Privacy & surveillance Settlement Against

PayPal settles for $1.75 million over deceptive practices

New Hampshire Attorney General Formella announced a $1.75 million settlement with PayPal over unfair and deceptive consumer practices.

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banking.nh.gov
New Hampshire Attorney General Formella announces $1.75 million relief settlement with PayPal concerning unfair and deceptive practices
“Today’s settlement with PayPal sends a strong message that companies who encourage consumers to trust them with their financial resources must be transparent regarding the ability of its customers to freely access their funds,” said Attorney General Formella.
New Hampshire Attorney General Formella announces $1.75 million relief settlement with PayPal concerning unfair and deceptive practices | New Hampshire Banking Department
doj.nh.gov
Attorney General Formella Announces $1.75 Million and Injunctive Relief Settlement with PayPal, Inc. and PayPal Holdings, Inc. Concerning Unfair and Deceptive Practices | New Hampshire Department of Justice
“Today’s settlement with PayPal sends a strong message that companies who encourage consumers to trust them with their financial resources must be transparent regarding the ability of its customers to freely access their funds,” said Attorney General Formella.
A New Hampshire Department of Justice investigation raised serious concerns that PayPal had violated New Hampshire’s consumer protection laws by, among other things:
Attorney General Formella Announces $1.75 Million and Injunctive Relief Settlement with PayPal, Inc. and PayPal Holdings, Inc. Concerning Unfair and Deceptive Practices
yahoo.com
The Department of Justice found that PayPal used deceptive advertising on being able to use funds anytime, imposing hurdles for "purchase protection" and implementing inadequate disclosures regarding the privacy of Venmo users' sensitive financial information, according to a news release.
The New Hampshire Attorney General’s Office reached a $1.75 million settlement with PayPal over unfair and deceptive practices, requiring significant changes to be made by both PayPal and Venmo.
The New Hampshire Attorney General's Office negotiated with PayPal, an e-payment platform, a $1.75 million injunctive relief settlement concerning unfair and deceptive practices, the office said Tuesday.

Workplace equity Settlement You decide

PayPal settles $30M DEI program rollback

PayPal settles $30 million over DOJ forcing it to scrap its DEI business initiative.

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washingtonexaminer.com
DOJ forces PayPal to scrap DEI business initiative in $30M settlement

Reproductive care Confirmed You decide

PayPal helps employees travel for abortion care

PayPal says it will help pay for employee travel to access abortion care if unavailable locally.

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bloomberg.com
Wade: PayPal (PYPL) Pledges to Cover Employees' Abortion Travel Costs - Bloomberg
cbsnews.com
PayPal made the decision to pay for employees to travel for abortions in necessary after the Texas Supreme Court upheld a law prohibiting abortion after a fetal heartbeat can be detected, something that can happen within six weeks of pregnancy.
MasterCard, PayPal and Starbucks are among the companies on a growing list to say they'll help pay for employees to travel for abortions if the procedure is not available where they live.

Community investment Confirmed In favor

PayPal grants $250,000 to Los Angeles food bank

PayPal granted $250,000 to the Los Angeles Regional Food Bank via its Corporate Advised Fund in response to wildfires.

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insidephilanthropy.com
Its 2024 annual report says it developed a rapid-response toolkit for PayPal and describes a $250,000 grant to the Los Angeles Regional Food Bank from PayPal’s Corporate Advised Fund, which PPGF accelerated in response to Los Angeles-area wildfires.

Corporate conduct Settlement Against

PayPal will pay $6 million to the Hawaiʻi Office of Consumer Protection to resolve a lawsuit alleging consumer-protection violations

PayPal has denied the claims, but will pay $6 million to OCP to resolve the lawsuit.

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cca.hawaii.gov
RELEASE: HAWAIʻI OFFICE OF CONSUMER PROTECTION ANNOUNCES $6 MILLION SETTLEMENT WITH PAYPAL - DCCA Hawaii
PayPal has denied the claims, but will pay $6 million to OCP to resolve the lawsuit.
The lawsuit alleged violations of Hawaiʻi’s consumer protection laws, including that, to encourage consumers to make and receive payments on PayPal and Venmo, PayPal deceptively advertises that it provides broad “Purchase Protection” for goods-and-services transactions on Venmo, privacy for Venmo users’ sensitive financial information, consistent and easy access to funds, and platforms safe from scams and fraud.
HONOLULU – The Hawaiʻi Department of Commerce and Consumer Affairs Office of Consumer Protection (OCP), on behalf of the state of Hawaiʻi, announced today a settlement with PayPal, Inc. and PayPal Holdings, Inc. (PayPal).
The settlement resolves OCP’s lawsuit, filed in December 2022, alleging unfair and deceptive acts or practices through PayPal’s operation of the PayPal and Venmo e-payment platforms.
sec.gov
On December 20, 2022, a civil lawsuit captioned State of Hawai‘i, by its Office of Consumer Protection, v. PayPal, Inc., and PayPal Holdings, Inc., Case No. 1CCV-22-0001610, was filed in the Circuit Court of the First Circuit of the State of Hawai‘i (the “Hawai‘i Action”).
sec.gov
On December 20, 2022, a civil lawsuit captioned State of Hawai‘i, by its Office of Consumer Protection, v. PayPal, Inc., and PayPal Holdings, Inc., Case No. 1CCV-22-0001610, was filed in the Circuit Court of the First Circuit of the State of Hawai‘i (the “Hawai‘i Action”).
sec.gov
PayPal, Inc., and PayPal Holdings, Inc., Case No. 1CCV-22-0001610, was filed in the Circuit Court of the First Circuit of the State of Hawai‘i (the “Hawai‘i Action”). The Hawai‘i Action asserts claims for unfair and deceptive acts and practices under Hawai‘i Revised Statutes Sections 480-2(a) and 481A-3(a). Plaintiff seeks injunctive relief as well as unspecified penalties and other monetary relief. On July 14, 2023, the court denied Defendants’ motion to dismiss the complaint.
On December 20, 2022, a civil lawsuit captioned State of Hawai‘i, by its Office of Consumer Protection, v. PayPal, Inc., and PayPal Holdings, Inc., Case No. 1CCV-22-0001610, was filed in the Circuit Court of the First Circuit of the State of Hawai‘i (the “Hawai‘i Action”).

Workplace equity Allegation Against

Desai sued PayPal over allegations of racial bias in its investment program

The allegation involving PayPal concerns race and ethnicity.

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finance.yahoo.com
She said PayPal has told multiple other businesswomen they were ineligible for funding because of their Asian descent.
She is seeking unspecified damages and to ban PayPal from considering race and ethnicity in its investment program.
PayPal accused of racial bias against Asian Americans in funding program
finance.yahoo.com
PayPal is being sued by the founder of venture firm Andav Capital, Nisha Desai, who claims she was excluded from the payment giant's diversity and equity program because she is Asian, according to a suit filed this week.
nypost.com
She is seeking unspecified damages and to ban PayPal from considering race and ethnicity in its investment program.
PayPal accused of racial bias against Asian Americans in funding program

Labor & working conditions Confirmed In favor

PayPal raised the wages of its hourly and entry-level employees

PayPal Grew Its Profits 28 Percent–by Raising Workers’ Wages.

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inc.com
PayPal Grew Its Profits 28 Percent–by Raising Workers’ Wages