Posted on 09/16/2004 5:17:08 PM PDT by Still Thinking
SAN FRANCISCO (Reuters) - PayPal, the online payments arm of eBay Inc., on Friday said it will soon fine people up to $500 for uses related to gambling, adult content or services, and buying or selling prescription drugs from noncertified sellers.
The new policy, which takes effect Sept. 24 and applies to both buyers and sellers, marks the first time PayPal has imposed fines for violations of its use policy, spokeswoman Amanda Pires said.
In addition to fines that could be applied to each violation, PayPal may take legal action to recover losses in excess of the fines, Pires said in an interview.
PayPal processes transactions on the Net and at one time had received almost 10 percent of its revenue from online gambling. But it halted the practice under regulatory pressure after its acquisition by eBay in 2002 and now prohibits the processing of gambling and adult transactions. Now it has decided to enforce that policy with fines.
"What you're seeing here is an evolution of our program. We're trying to deter people who would offer PayPal as a way to pay for anything in these categories," said Pires in an interview.
Under the new policy, prescription drug sellers who do not have Verified Internet Pharmacy Practice Sites certification from the National Association of Boards of Pharmacy, and the people who buy from them, also face fines and possible legal action if they do business using PayPal.
Pires said the changes were not in response to any sort of pressure from regulators.
Eric Jackson, a former PayPal executive and author of the new book "The PayPal Wars," had a different view.
He called the new policy "draconian" and said it was likely a two-fold strategy to discourage certain behavior while heading off regulators.
"I can only surmise that PayPal is coming under increasing regulatory pressure and has no choice at this point but to take an aggressive posture," Jackson said.
"I think they're making an emphatic statement that they're making a clean break from gambling in particular," he said.
Like living in a HOA. Isn't there an excess of "govern"ment already without all the amateura getting into the act?
No. People can choose not to use PayPal. Government doesn't allow us that option.
No. They have the power to enforce voluntary agreements and levy penalties for violation of those agreements.
They would only have the power of the government if businesses and people were forced to use paypal. No one is.
PORN? PORN???? PORN?????
Somethimg must be DONE!!!!
Actually, the gambling and prescriptions I can understand, given the regulations on both.
But porn (not that I partake, she said modestly) is not illegal if you're of age. Next they won't let you buy underwear with PayPal, I guess.
I take part with gusto. BTW I am 41yo
Gambling!, Debt Considlation!.
Just reminds me of the Chapelle internet parody.
Well, I like to try my undies on before I buy them anyway.
Not that I would ever.....
A friend of mine.....
LVM
The first time they try to debit my account I'll bring criminal charges against them so fast it'll suck the air from their collective lungs. Further, I believe that there actions would result in a civil suit that'll stop their heart.
Levy a fine? I guess they never heard of a little something called due process.
"OOOoooo, I like to dance a little side step...." (Best Little Whorehouse in Texas)
hehehehehe
Yeah,... dude ...I think I know him.... looks very generic...always pays cash.... not that I watched THAT closely.. but he looked.. you know... suspicious
PayPal is a private company. They are free to pursue this policy if they wish.
Don't like it?
Don't use PayPal.
not me. I only use mine to torture prisoners.
Wrong...
I did a quick search, some one just bought Pornpal.com
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.