Class-Action Alleges Unsolicited PayPal Texts Violate Consumer Protection Law

PayPal was hit with a class-action lawsuit today alleging that the company violated a federal communications law by sending consumers unsolicited text messages.

The lawsuit charges PayPal with violating the Telephone Consumer Protection Act, a federal law designed to protect consumers from unwarranted, unsolicited phone communication from automatic telephone dialing systems (read the lawsuit below).

The consumer class-action was filed in California by Illinois resident David Roberts. He alleges that more than a year ago:

Defendant, or someone acting on Defendant’s behalf, sent the following text message to a cellular telephone number on Plaintiff’s cellular account:

PayPal: Welcome! To learn about PayPal Mobile services, visit m.paypal.com. To stop notifications, text STOP to 729725. For more info, text HELP to 79275 o 1/2 r call 1-888-221-1151. Msg and data rates may apply. 2/2

The TCPA lets consumers sue for a minimum of $500 in damages for each unauthorized call. The plaintiff cites a provision in the statute that prohibits automated calls to cell phones, pagers, “or any service for which the called party is charged for the call.” The case could hinge upon whether texts are considered “any service” under this part of the law. 47 U.S.C. § 227(b)(1)(A)(iii).

You can read the new class-action complaint accusing PayPal of violating the TCPA below, and follow the case docket here.

Complaint (Robers v. PayPal, Inc.)