PayPal wants a Level Playing Field when it comes to how sellers represent its service to customers, and it wrote a provision into its User Agreement to ensure sellers comply.
Earlier this month, we wrote about higher fees
PayPal had tucked into the new User Agreement that takes effect at the end of March.
A reader followed up, pointing to the "non-discouragement" clause and asked us to do a story on it. "It seems like PayPal is trying to interfere more and more in businesses," he said.
Here's the provision:
We are adding a non-discouragement clause for sellers that provides:
In representations to your customers or in public communications, you agree not to mischaracterize PayPal as a payment method. At all of your points of sale (in whatever form), you agree not to try to dissuade or inhibit your customers from using PayPal; and, if you enable your customers to pay you with PayPal, you agree to treat PayPal's payment mark at least at par with other payment methods offered.
We reached out to PayPal, and we asked what was new about the provision. A spokesperson told us, "To clarify, this clause is simply to ensure that PayPal receives at least equal treatment to other payment methods in advertising, promotional content and in the checkout flow with merchants that choose to offer our services to customers."
PayPal had previously had a "non discouragement clause," but he didn't explain what was different about this one.
Let us know what you think of the provision. Should PayPal be forcing this policy on merchants who use its service?