PayPal backs away from controversial robocalling policy

PayPal backs away from controversial robocalling policy

Following a backlash from customers and regulators, PayPal has moved to "clear up any confusion" on its policy for sending out automated phone calls and text messages.

Earlier this month consumer groups reacted furiously to an update to PayPal's user agreement which seemed to pave the way for the firm to send out robocalls and texts for things such as promotions and offers.

The update - which had been set to go into effect on 1 July - also let PayPal contact users on any phone number it could obtain, not just the one linked to an account, and offered no opt-out option.

The move prompted the Federal Communications Commission to write to PayPal, reminding the company that it is subject to federal guidelines designed to protect people from unwanted calls and text messages.

Now, in a blog post, PayPal says that it "used language that did not clearly communicate how we intend to contact" customers, causing "confusion and concern".

The user agreement now stresses: "We will not use autodialed or prerecorded calls or texts to contact our customers for marketing purposes without prior express written consent".

It continues: "We respect our customers’ communications preferences and recognize that their consent is required for certain autodialed and prerecorded calls and texts. Customers may revoke consent to receive these communications by contacting PayPal customer support and informing us of their preferences."

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