A policy of eBay Inc. and its PayPal unit regarding so-called
robocalls is drawing more scrutiny, with the Federal Communications
Commission saying it may violate federal law and could result in
thousands of dollars in fines.
"PayPal's recent amendments to its User Agreement raise serious
concerns for the Enforcement Bureau," the FCC said in a letter to
PayPal on Thursday. "FCC requirements directly prohibit requiring a
consumer to consent to receive autodialed or prerecorded
telemarketing or advertising calls as a condition of purchasing any
property, good, or service."
If PayPal fails to obtain proper consent, the company could face
fines of up to $16,000 per call or text message, the agency
said.
On Wednesday, the New York state attorney general sent letters
to eBay and PayPal seeking more information about the new
policies.
The issue relates to a recent change to PayPal and eBay's
respective user agreements—ahead of a planned split later
this year—that appear to give the firms leeway to blast
users with automated calls and text messages. The agreements give
eBay and PayPal the right to use "autodialed or prerecorded calls
and text messages" to collect debts, or send surveys or
promotions.
The scrutiny comes at a particularly inopportune time for the
companies, as they have been meeting with investors and analysts
this week in New York ahead of their planned split in this year's
third quarter.
A PayPal spokeswoman said customers can choose not to receive
autodialed or prerecorded messages, pointing to a June 5 blog post
that says users can contact customer service by email or phone to
opt out. Initially, it wasn't clear how customers could avoid the
calls, other than canceling their service.
The spokeswoman said the company will respond to the FCC's
letter.
Write to Greg Bensinger at greg.bensinger@wsj.com
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