Business Maverick: PayPal customer account freeze lawsuit sent to arbitration

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PayPal Holdings Inc customers who accused the digital payment platform of violating racketeering laws by freezing their accounts with no explanation must first try to resolve the dispute in arbitration.

The customers are bound by the company’s User Agreement, which requires disputes to be resolved individually in arbitration, US District Judge Beth Labson Freeman in San Jose, California, ruled on Thursday.

PayPal allows new customers to opt out of the arbitration clause by mailing in a form within 30 days of accepting the User Agreement.

 

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