McGraw reaches settlement with PayPal

By John O'Brien | Oct 5, 2006


CHARLESTON - State Attorney General Darrell McGraw recently reached an agreement with PayPal, Inc., to resolve an investigation into the company's business practices.

As a result of the agreement, PayPal will make a payment to 28 states, including West Virginia, an amount of $1.7 million.

West Virginia's share is $59,500.

PayPal is an Internet-based company that facilitates the transfer of money between individuals and companies over the Internet and is commonly used by people participating in online auctions, McGraw said.

He added that since 2000, his Consumer Protection Division has received complaints about the company ranging from payments being frozen to incorrect accounts being charged.

"With the Internet becoming more important to the nation's economy, it is critical that companies such as PayPal comply with the consumer protection laws," he said in a release. "I am heartened by PayPal's agreement to change its business practices without West Virginia or other states being forced to litigate."

PayPal also agrees to provide better notice regarding terms and conditions for its usage, and consumers will be given a clear choice regarding what form of payment to use.

The agreement closes a multi-state investigation that began in 2003.

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