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Subject: Paypal heads-up


spinner ( ) posted Fri, 11 June 2004 at 8:07 AM · edited Thu, 07 November 2024 at 9:51 AM

Attached Link: http://www.3-darena.com/index.php?name=PNphpBB2&file=viewtopic&p=1453#1453

Hi, I usually don't hawk threads at 3-D Arena, but in this case I'll make an exception, and hope Clint forgives me, I see it as a community issue, and I don't want to cut and paste the entire thread into this forum. I've currently got an ongoing saga with them that may serve as a warning to others if PayPal should happen to ah.... misplace their money. ~S


Jumpstartme2 ( ) posted Fri, 11 June 2004 at 12:39 PM

Aww cripes...sorry that crap happened to ya Spinner.. I have a Paypal account but have never used it..prolly wont now either. Thanks for the heads up, and let us know how things turn out ;)

~Jani

Renderosity Community Admin
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pearce ( ) posted Fri, 11 June 2004 at 1:16 PM

That's a lousy situation to be in. I only use them for small transactions (e.g. getting paid for model sales from rendo ha ha). Paypal UK are regulated by the Financial Services Authority, so maybe that's why the Brit helpdroids tried harder (or maybe we really are more polite -- I generally find call-centre staff OK in themselves). Hope it all works out OK though; that's an awful lot of money to lose track of. m.


Sasha_Maurice ( ) posted Sun, 13 June 2004 at 1:16 AM

Attached Link: paypalwarning.com

Ahhh..that sucks. :( Hope everything goes better in your case, in the meantime here is a link to cheer you up a bit. ;)


Jumpstartme2 ( ) posted Sun, 13 June 2004 at 1:43 AM

Oh great...Im going to close my account right now >:( I had no idea all this crap was happening with Paypal..

~Jani

Renderosity Community Admin
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spinner ( ) posted Sun, 13 June 2004 at 5:27 AM

I'm in two minds. Had their customer service been better I wouldnt have kicked up a fuss, but come on, it's now been over a week since that money went awol, and they havent contacted me once. I'm calling local authorities tomorrow - like the UK and US, we have an FDIC equivalent. Maybe if you keep amounts under 50-100 USD in the acct you're fine ? ~S


Djeser ( ) posted Sun, 13 June 2004 at 5:44 AM

I had a problem with them a couple of years ago, when about $500 went "missing". My experiences with their staff were incredibly frustrating; between emails and phone calls, I have to say I was not impressed at all. Eventually they assured me it was all taken care of, but funnily enough, my money never reappeared. I basically wrote it off to a very expensive lesson learned. I hope you have better luck, spinner.

Sgiathalaich


spinner ( ) posted Sun, 13 June 2004 at 6:05 AM

It's annoying - I wanted to purchase software for commercial use - I am freelancing these days, and even though I can afford to pony up to Digi-Element, I could have bought Vue Pro for the price of the actual cost of the purchase, you know ? ~S


spinner ( ) posted Thu, 17 June 2004 at 1:01 PM

Whooo ! People, the trick is NOT to talk to paypal, but to light a fire under the holding bank's ass, as they will charge a fee for lighting a fire upstream, so to speak. At least here I gots my cash - I updated the story in the link above, for those interested in the details ~S


Jumpstartme2 ( ) posted Thu, 17 June 2004 at 1:32 PM

Great news to hear Spinner! Glad you got your money back from those assholes.

~Jani

Renderosity Community Admin
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ivyroses ( ) posted Thu, 17 June 2004 at 2:48 PM

Glad it all worked out. I live about 15 minutes away from their call center. The building does not look like a barn. l I figured if I encountered an issue with their service I would be hanging out in their lobby until it is resolved. =)


Grimmshaw ( ) posted Thu, 17 June 2004 at 3:48 PM

I noticed the Paypal thread and wanted to know if everyone's aware of Paypal's Acceptible Use Policy? I know it's a subject change, but I've been researching it in depth. The AUP policy pertains to nudity and sexual materials sold by those who use paypal as a means of receiving payment.


spinner ( ) posted Thu, 17 June 2004 at 3:56 PM

Most of the Poser/3D people I hang with are aware of it, as far as I know. Can't speak for anyone else. Check out paypalsucks.com if you want more data ~S


rdonovan ( ) posted Thu, 17 June 2004 at 7:58 PM

PayPal is an example of how there isn't anything that eBay can't buy out and screw up. PayPal was kicking BillPoint's (eBay's old money transfer service) ass, so eBay solved the problem by taking over PayPal and applying the same "take the money and run" philosophy - "we don't want to hear about your problems, and we can do anything we please - you have no rights." So, a company that knowingly and willfully provides a market for pirated software, counterfeit CDs and DVDs, and fake designer clothes now has its hooks in peoples' bank accounts.


spinner ( ) posted Thu, 17 June 2004 at 9:46 PM

Thats only if you have a credit card, though ? They cant just take money from acounts here - they'd need a bill or something. ~S


rdonovan ( ) posted Thu, 17 June 2004 at 9:51 PM

In the U.S. they can access your checking account with what they call "Instant Transfers" - the money is debited from your bank account and deposited in the seller's PayPal account. Credit cards can also be used, but the potential for abuse is much higher when they have direct access to the cash balance in your bank. Don't know what the rules are in other countries.


spinner ( ) posted Thu, 17 June 2004 at 9:59 PM

You can't do that here. There even was a major, major brouhaha when Visa and the rest started charging and keeping double the amount of money as a cash reserve i.e when you pay for a night in a hotel at 100 USD and 100 USD is deducted and 100 USD is reserved for 24-72 hrs. I ran into that when I tried getting my money out of the Union Bank of Norway's account (paypal's local bank) - they stated very clearly that they understood, and gave me tips on how to go about it, but they also stated very clearly that for any bank or financial entity to just go in to someone's bank account with a very sound reason, i.e automated payments like rent and mortgages and other stuff specified automated by me, any transaction or transfer given to that account wuould need to be approved by me. Cheques are actually pretty antiquated here, nobody uses them - it's all cards and smartcards and payment by cellphones. ~S


Grimmshaw ( ) posted Fri, 18 June 2004 at 11:09 AM

Attached Link: Visa's Porn Crackdown

Due to some users from another site boycotting Paypal, I decided to see what the issue was about. For those that are not aware of the situation, it was explained to me that Paypal has a department that verifies business clients that use Paypal (as a means of receiving payment from customers)are following Paypal's Acceptible Use Policy (AUP). I'm not sure if they actively search for it or respond to complaints, but if such a site is found to contain items that violate the AUP, Paypal can lock the account. An agent would compile as recommendation and submit it to a supervisor in the department whoi in turn reviews the case. The supervisor makes the decision of limiting access to or locking out an account. Only under certain circumstances, such as child pornography, can a non-supervisory agent immediately lockout an account.

I contacted Paypal and spoke at length with a Customer Service Representative (CSR) who seemed knowledgeable about the issues surrounding changes in Paypals adult material policy. Here is a synopsis of the issues as I now understand them.

Visa
About a year ago, Visa decided to take a hard line with adult oriented sites using Visa as a method of payment. Adult oriented sites may include many aspects of the industry, but Visa was primarily focusing on pornographic web site. Visa implemented registration requirements and fee's on porn sites wishing to accept Visa as a means of payment. Visa is requiring any site selling anything defined as adult content to pay a 750$ fee and release vital company infomration allowing the use of Visa as a means of payment. This change in policy is due to the large number of charge backs Visa suffered from spouses denying the service and more recently a new sect seeking to defraud Visa while obtaining free services from these sites. The link is to an article called Visa's Porn Crackdown by Seth Lobove at Forbes.com

The Paypal CSR spent nearly an hour with me on the phone as we both tried to search for the Visa Policy. Neither of us could find it, but I did find a contact number within Visa that alluded to the topic. He found many references at Visa.com as did I, but nothing linking us to a document. I found a few references here and there through Google, yet nothing linking me to the policy. I will continue looking as time permits.

Paypal
Paypal has an independent department that oversees compliance to the Acceptable User Policy or AUP. This department responds to complaints about Paypal being associated with adult content. Agents have the ability to immediately lock a Paypal account, but the CSR I spoke with explained that hes only known that to happen in cases involving illegalities; i.e., child pornography.

Under normal circumstances a Paypal AUP agent would review a site based on a complaint or report of questionable circumstances. The agent provides a report and recommendation to a supervisor. A supervisor would them make a decision pertaining to the report. Initial action would include an email to the site under investigation explaining that the site contains questionable material, explanations of what the offending material is and a request to modify or remove said content from the site.

Generalities
Based on my conversations with the CSR, its my opinion that renderings having well defined genitalia, collectively meaning penis or vagina, will most likely be interpreted as a breach of Paypals AUP. My recommendation for those selling programs is to make sure any content illustrating the aforementioned body parts are either covered when using pictorial examples or reference the models as being anatomically correct in the product explanation. In any event, I would recommend that anyone looking to use a brokerage house for their wares check to see if there is any content requirements or rules.

Disclaimer: I am not an attorney nor do I claim any expertise in this area of law. My opinions and interpretation are based solely on the information provided me by others and/or as found in other sources.


spinner ( ) posted Fri, 18 June 2004 at 11:18 AM

Did you to ask which criteria i.e the Paypal agent would be working from, and typically which background such an agent would have to have in order to make a qualified judgement on whether an image was a softcore or hardcore or no-core render at all ? As long as there is allusion to a policy and no hard documentation, they can pull at the whim of the agent. oh well - thread drift... ~S


spinner ( ) posted Tue, 27 July 2004 at 4:33 PM

Hi, for those of you who don't know, 3-DA is closed, so you can't see the thread, but I just wanted to update the thread with the fact that I just received notice that PayPal has been ordered to settle their class action suit. And I quote, in full: IF YOU OPENED A PAYPAL ACCOUNT BETWEEN OCTOBER 1999 AND JANUARY 2004, YOU MAY BE ENTITLED TO A PAYMENT FROM A CLASS ACTION SETTLEMENT. PLEASE READ THIS NOTICE CAREFULLY. UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA SAN JOSE DIVISION In re PayPal litigation Case No. CV-02-01227-JF (PVT) NOTICE OF PENDENCY OF CLASS ACTION AND PROPOSED SETTLEMENT 1. WHY DID I GET THIS NOTICE? You have been sent this Notice because the records of PayPal, Inc. indicate you are a current or former PayPal account holder. This means you may be eligible to receive a payment from the proposed class action settlement in the lawsuit In re PayPal Litigation, Case No. 02 1227 JF PVT, pending in the United States District Court for the Northern District of California in San Jose. This Notice provides a summary of the terms of the proposed settlement. It also explains the lawsuit, your legal rights under the settlement, what benefits are available to you under the settlement, and how to get them. 2. WHAT IS A CLASS ACTION? In a class action, one or more people, called Class Representatives (in this case Roberta Toher and Jeffrey Resnick), sue on behalf of people who have similar claims. All of these people are members of the Class. One court resolves the issues for all Class Members, except for those who exclude themselves from the Class. United States District Judge Jeremy Fogel is in charge of this class action. 3. WHAT IS THIS LAWSUIT ABOUT? In early 2002, Plaintiffs Roberta Toher and Jeffrey Resnick filed separate lawsuits against PayPal, Inc. These two cases were later consolidated into one lawsuit in the United States District Court for the Northern District of California, San Jose Division, entitled In re PayPal Litigation, Case No. CV 02 01227-JF (PVT). The lawsuit alleges that PayPal violated the federal Electronic Fund Transfer Act ("EFTA"), 15 U.S.C. E 1693 et seq., including provisions requiring PayPal to supply customers with information about dispute resolution procedures and to follow certain procedures when investigating complaints of unauthorized or incorrect electronic fund transfers. For example, the lawsuit claims that PayPal did not provide account statements in the manner required by the EFTA. The lawsuit further alleges that PayPal has placed inappropriate restrictions or other limits on customers' accounts and engaged in other improper practices. Based on these practices, the lawsuit asserts claims under California state law for conversion, money had and received, negligence, and violations of consumer protection statutes. PayPal does not believe that it did anything wrong. In fact, PayPal disputes that the EFTA, originally passed in 1978, applies to its business. PayPal denies any and all liability for the claims alleged in the lawsuit. The Court did not decide in favor of the Plaintiffs or PayPal. Instead, beginning in the fall of 2003, the parties began a series of settlement negotiation sessions mediated by United States Magistrate Judge Edward Infante. Eventually, in November 2003, both sides agreed to a settlement in principle. By settling their claims, both parties avoided the uncertainty and cost of a trial. The settlement provides money and other benefits to the Class. On June 11, 2004, the parties entered into a formal, written Settlement Agreement, which is on file with the Court and available on the Internet at https://www.paypal.com/settlement/. By entering into the Settlement Agreement, PayPal is not admitting any wrongdoing. PayPal continues to believe that it did not do anything wrong. The Representative Plaintiffs and the attorneys appointed by the Court to represent the Class believe that the settlement is fair to Class Members. By this notice, the Court is not expressing any view on the merits of the lawsuit. 4. HOW DO I KNOW IF I AM PART OF THE SETTLEMENT? On July 12, 2004, Judge Fogel entered an order granting preliminary approval of the settlement and certifying the following class for purposes of the settlement: All Persons who opened a PayPal account during the period from October 1, 1999 through January 31, 2004. Excluded from the class are any judicial officer to whom the lawsuit is assigned; PayPal and any of its affiliates; any current or former employee, officer, or director of PayPal; anyone who resides in Austria, Belgium, Denmark, Germany, Greece, Finland, France, Ireland, Italy, Luxembourg, Portugal, Spain, Sweden, The Netherlands, or United Kingdom; and all persons who timely and validly request exclusion from the class pursuant to this notice. Thus, if you opened a PayPal account between October 1, 1999 and January 31, 2004, and are not one of the excluded persons listed above, you are a member of the class. 5. WHO REPRESENTS ME IN THIS CASE? To represent the class, the Court has appointed Plaintiffs Roberta Toher and Jeffrey Resnick as Representative Plaintiffs and their counsel of record as Class Counsel. The Court has also appointed the following attorneys and law firms as Co-Lead Counsel: A. J. De Bartolomeo Girard Gibbs & De Bartolomeo LLP 601 California Street, Suite 1400 San Francisco, California 94108 Robert C. Finkel Wolf Popper LLP 845 Third Avenue New York, New York 10022 6. WHAT DOES THE SETTLEMENT PROVIDE? A. Injunctive Relief The settlement requires that PayPal consent to the entry of an order, called an injunction, that mandates various changes to PayPal's business practices. PayPal has already implemented these changes. The injunction includes PayPal's agreement to comply with certain notice and error resolution procedures of the EFTA, and to follow certain procedures for limiting accounts and responding to and returning funds to customers whose accounts have been limited. A copy of this injunction can be found as Exhibit D to the Settlement Agreement, entitled "Form of Injunctive Order." B. Monetary Relief Under the settlement, PayPal will pay $9.25 million into a settlement fund, to be held in an interest-bearing account. The fund will be used (1) to make payments to class members who submit valid claims before the claims deadline; (2) to pay certain costs of giving notice to the Class and of settlement administration, as approved by the Court; and (3) to pay attorneys' fees and expenses to Class Counsel in the amount awarded by the Court. Class Counsel have proposed that, after deduction of notice and administrative costs and Class Counsel's attorneys' fees and expenses, the balance of the fund ("Net Settlement Fund") be applied in accordance with a written plan of allocation. (The following explanation is qualified in its entirety by reference to the Plan of Allocation attached to the settlement Agreement as Exhibit C, a copy of which is on file with the Court and available on the Internet at https://www.paypal.com/settlement/.) 1. Certain Definitions Certain capitalized words are used in this part of the Notice to describe the way in which the Net Settlement Fund will be allocated. These capitalized words have the following meanings: (a) "Released Persons" means PayPal and its past and present partners, affiliates, predecessors, successors, assigns, parents, subsidiaries, officers, directors, attorneys, and employees. (b) "Fund Claimants" are class members who submit timely, valid claims in accordance with the procedures described in this notice. (c) "Dispute Resolution Claimants" are Fund Claimants who contend that, prior to February 1, 2004, they: (i) experienced or reported to PayPal an unauthorized or incorrect electronic transfer to or from their PayPal account including, without limitation, electronic transfers initiated by (a) the Fund Claimant; (b) PayPal in connection with, among other things, chargebacks, refunds, buyer complaints, PayPal's Seller Protection Policy, Buyer Complaint Process and/or Buyer Protection Policy; or (c) any third party; (ii) had access to their PayPal account improperly, incorrectly or erroneously limited or restricted, in whole or in part; (iii) made a request for information in connection with PayPal's restriction or limitation of the Fund Claimant's PayPal account or regarding an incorrect or unauthorized electronic transfer to which PayPal did not respond at all or did not respond to the Fund Claimant's satisfaction. (d) "Statutory Damage Fund Claimants" are all Fund Claimants who are not Dispute Resolution Claimants. 2. Statutory Damage Fund Claimants The plan of allocation designates $1 million of the Net Settlement Fund to a "Statutory Damage Fund," to be distributed equally among all Fund Claimants who are not Dispute Resolution Claimants. This means that if you are a member of the Class and do not fall within the definition of a "Dispute Resolution Claimant," as set out above, you can make a claim for a payment from the Statutory Damage Fund. The Statutory Damage Fund provides compensation for potential statutory damages under the Electronic Fund Transfer Act ("EFTA"), 15 U.S.C. E 1693 et seq. Statutory damages under the EFTA are limited by law to no more than $500,000 for any class of individuals claiming "the same failure to comply." Plaintiffs' counsel contended in the litigation and for purposes of settlement that PayPal was potentially liable for multiple failures to comply, a position PayPal vigorously opposed. The Statutory Damage Fund Claim Form requires you to provide certain identifying information and sign a statement under penalty of perjury authenticating your claim, which may be subject to verification by PayPal's records. To make a claim for payment from this fund, please complete and submit the Statutory Damage Fund Claim Form available on the Internet at https://www.paypal.com/settlement/ in accordance with the instructions on the form. 3. Dispute Resolution Claimants The balance of the Net Settlement Fund will be allocated for distribution to Dispute Resolution Claimants. If you fall within the definition of a "Dispute Resolution Claimant," as set out above, you have the right to make a Dispute Resolution Claim. You can choose to submit either the Short Claim Form or the Long Claim Form available on the Internet at https://www.paypal.com/settlement/. If the Court awards attorneys' fees and costs in the amount requested, Class Counsel estimate that there will be approximately $4.3 million to pay the claims of Dispute Resolution Claimants. Half of the money allocated to Dispute Resolution Claimants will be allocated to pay Short Form Claimants (the "Short Form Fund"). The other half will be allocated to pay Long Form Claimants (the "Long Form Fund"). a. Short Form Claimants The Short Claim Form requires you to provide certain identifying information and sign a statement under penalty of perjury, which may be verified using PayPal's records, that you experienced an unauthorized or incorrect electronic transfer or an account limitation or denial of access to your account. If you make a timely, valid claim using the Short Claim Form, you will receive a payment of $50, unless the amount needed to pay all of the Short Form claims exceeds the Short Form Fund. In that case, the Short Form Fund will be divided equally among all Short Form Claimants. If the amount needed to pay all of the Short Form claims is less than the amount of the Short Form Fund, the money left over will be added to the Long Form Fund. b. Long Form Claimants The Long Claim Form requires you to provide certain identifying information; give the details of the account restriction(s) and/or unauthorized electronic fund transfer(s) you experienced; state the amount of your claim, and sign a statement, under penalty of perjury, which may be subject to verification by PayPal's records, that you actually suffered the claimed damages. You should also provide any documentation you have that will support your claim, as explained in more detail on the Long Form. If you make a timely, valid claim using the Long Claim Form, an independent, court-approved claims administrator will evaluate your claim and determine the amount you should receive. In making this determination, the claims administrator will take into account the amount of damages you claim; the nature of your complaint; the quality of the supporting documentation you provide; your recoverable damages; the probability that you would be successful on your complaint; and such other factors that the claims administrator considers relevant. If the amount needed to pay all of the Long Form claims is less than the amount of the Long Form Fund, the money left over will be added to the Short Form Fund. c. Balance after payment of Long Form and Short Form Claimants If there are sufficient funds to pay all Short Form and Long Form Claimants in full in accordance with the written plan of allocation, any remaining funds will be divided equally among all Dispute Resolution Claimants to supplement their recoveries. 7. HOW DO I MAKE A CLAIM AND GET A PAYMENT? To make a claim for payment, please complete one of the claim forms (Statutory Damage Claim Form, Short Claim Form, or Long Claim Form) available on the Internet at https://www.paypal.com/settlement/. To make a valid claim, you will need to (1) fill out the claim form electronically and (2) print the signature page of your claim form, sign it and return it by mail to the address provided on the claim form. You must complete the claims procedure no later than October 23, 2004. Your payment will be transferred electronically to your PayPal account. If you do not have a current, unrestricted PayPal account or you indicate on the claim form that you prefer to receive a check, payment will be made in the form of a check, sent by first class mail to the address provided on the claim form. If you are paid by check, a $1.00 charge will be deducted from your payment to cover the cost of issuing and mailing the check. The claims administrator will not issue checks for less than $1.00. Such amounts will instead be reallocated to those claimants who are entitled to receive distributions. 8. WHAT AM I GIVING UP IF I PARTICIPATE IN THE SETTLEMENT? If you do not exclude yourself from the class and the settlement is granted final approval, the judgment entered upon approval of the settlement will dismiss the lawsuit with prejudice, and will release any and all claims, demands, rights, liabilities, and causes of action of every nature and description whatsoever, known or unknown, matured or unmatured, at law or in equity, existing under federal or state law, that were or could have been asserted in the Litigation against the Released Persons, including without limitation, claims under the Electronic Fund Transfer Act, California Business and Professions Code E 17200 et seq.; the California Consumers Legal Remedies Act, Cal. Civ. Code E 1750 et seq.; and for PayPal's alleged conversion, breach of the User Agreement or other contract, money had and received, unjust enrichment, and negligence under California law or any other state or federal law arising out of, among other things, PayPal's restriction or limitation of accounts; PayPal's dispute resolution policies, practices and procedures; PayPal's debit of accounts following the receipt of chargebacks, buyer complaints, reports of unauthorized access or in connection with its Seller Protection Policy, Buyer Complaint Process or Buyer Protection Policy; PayPal's alleged conversion of funds; and PayPal's compliance with the Electronic Fund Transfer Act, 15 U.S.C. E 1693 et seq., or any similar legislation arising under the laws of any state. You will be permanently barred from bringing any such claims that arose prior to February 1, 2004. With regard to accounts that were limited prior to February 1, 2004, however, you will not be releasing claims to recover any balance that remained in the account 180 days after the account was initially limited. In summary, if you do not exclude yourself, you will not be able to sue, continue to sue, or be part of another lawsuit against PayPal relating to the legal issues in this case. You will be bound by all proceedings, orders, and judgments entered in connection with the settlement, whether favorable or unfavorable, and will be represented by the Representative Plaintiffs and Class Counsel for purposes of the settlement. If you do not exclude yourself from the class, and the settlement is granted final approval, your claims against PayPal and its affiliates will be released as described above. If you are a class member, you may, if you wish, appear in this lawsuit through your own attorney at your own expense. You need not do so to participate in the settlement, however. 9. WHAT IF I WANT TO EXCLUDE MYSELF (OPT-OUT) FROM THE SETTLEMENT? If you do not want to remain a member of the class and participate in the settlement, then you must mail or deliver (email is not considered adequate), such that it is RECEIVED on or before September 7, 2004, (1) an original written, signed request for exclusion to Co-Lead Counsel at the following address: Co Lead Counsel: PayPal Class Action Settlement A. J. De Bartolomeo Girard Gibbs & De Bartolomeo LLP 601 California Street, Suite 1400 San Francisco, California 94108 and (2) a copy of the written signed request to PayPal's counsel at the following address: PayPal's counsel: PayPal Class Action Settlement Morgan Lewis & Bockius LLP One Market Spear Street Tower San Francisco, California 94105 This request for exclusion must contain your name and address; be signed by you; and include the reference "In re PayPal Litigation, Case No. CV-02-1227-JF (PVT)." If you exclude yourself from the class, you will not participate in the settlement and cannot receive any payment from the settlement. Your claims will not be released. 10. HOW WILL THE LAWYERS FOR THE CLASS BE PAID? From the inception of the litigation in early 2002 to the present, Class Counsel have not received any payment for their services in prosecuting the case, nor have they been reimbursed for any out-of-pocket expenses. If the Court approves the proposed settlement, Class Counsel will make a motion to the Court for an award of attorneys' fees of up to $3,332,500 and reimbursement of expenses of up to $135,000, to be paid from the $9.25 million settlement fund. Class Counsel will also seek reimbursement from the settlement fund on behalf of certain of the named plaintiffs in the litigation for reimbursement of their expenses related to their service as class representatives in the litigation, in an aggregate amount not to exceed $15,000. The motion will be heard at the settlement hearing described below in Section 11. Class Counsel's motion for an award of attorneys' fees and reimbursement of expenses is based on various factors that include the benefits obtained for the class through litigation. These benefits include the $9.25 million cash settlement and PayPal's agreement to the injunctive relief requirements. In addition, certain changes to PayPal's business practices are attributable in part to this litigation, including PayPal's decision to undertake to return to its customers approximately $5.1 million in those accounts to which access was limited for 180 days or more; modifications to PayPal's arbitration provision in its User Agreement and its replacement with a clause that limits PayPal's ability to compel arbitration where the total amount of the award sought is $10,000 or greater; and various other changes in PayPal's business practices during the pendency of the litigation. Class Counsel submitted their proposed request for attorneys' fees to the Magistrate Judge who had previously presided over discovery and settlement discussions. Class Counsel's request for attorneys' fees is equal to the amount recommended by the Magistrate Judge. 11. WHEN AND HOW WILL THE COURT DECIDE WHETHER TO APPROVE THE SETTLEMENT? The Court will hold a hearing on September 24, 2004, at 9:00 a.m., before the Honorable Jeremy Fogel, United States District Judge, United States District Court for the Northern District of California, Courtroom 3, 5th Floor, 280 South First Street, San Jose, California 95113. The purpose of the hearing will be to determine (a) whether the proposed settlement should be approved as fair, reasonable, and adequate; (b) whether the application by Class Counsel for an award of attorneys' fees and expenses should be granted; and (c) whether the lawsuit and class members' claims should be dismissed with prejudice pursuant to the settlement. The Court reserves the right to adjourn or continue the hearing without further notice to the class. You may attend the hearing if you wish, but are not required to do so to participate in the settlement. If the settlement is not approved by the Court, the lawsuit will proceed. If there are further actions taken in the case that affect your rights, you will receive notice as determined by the Court. 12. CAN I COMMENT ON THE SETTLEMENT? If you decide to remain in the class, and you wish to comment in Support of or in opposition to the settlement or Class Counsel's motion for attorneys' fees and expenses, you may do so by mailing or delivering your written (non-email) comments, such that they are RECEIVED on or before September 3, 2004, as follows: (1) the original must be sent to the Court at the following address: Clerk of the Court United States District Court for the Northern District of California 280 South First Street San Jose, California 95113 and (2) copies must be sent to Co Lead Counsel and PayPal's counsel at the addresses listed in Section 9, above. Your written comments must contain your name and address; be signed by you; and include the reference In re PayPal Litigation, Case No. CV-02-1227-JF (PVT). If you wish to appear and present your comments orally at the hearing, your written comments must contain a notice that you intend to appear and be heard, a statement of the position you intend to present at the hearing, and any supporting arguments. If you do not comply with the foregoing procedures and deadlines for submitting written comments or appearing at the hearing, you will not be entitled to be heard at the hearing; contest or appeal from approval of the settlement or any award of attorneys' fees or expenses; or contest or appeal from any other orders or judgments of the Court entered in connection with the settlement. 13. HOW CAN I GET MORE INFORMATION ABOUT THE SETTLEMENT? You can get more information by writing Plaintiffs' Co-Lead Counsel electronically or by first class mail at: paypalsettlement@settlement4onlinepayments.com Girard Gibbs & De Bartolomeo LLP 601 California Street, Suite 1400 San Francisco, California 94108 Wolf Popper LLP 845 Third Avenue New York, NY 10022 This notice is a summary and does not describe all details of the settlement. For full details of the matters discussed in this notice, you may wish to review the Settlement Agreement dated June 11, 2004 and on file with the Court or visit https://www.paypal.com/settlement/. Complete copies of the Settlement Agreement and all other pleadings and papers filed in the lawsuit are also available for inspection and copying during regular business hours, at the Office of the Clerk of the Court, United States District Court for the Northern District of California, 280 South First Street, San Jose, California 95113. PLEASE DO NOT TELEPHONE THE COURT REGARDING THIS NOTICE. DATED: July 12, 2004 BY ORDER OF THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA


elizabyte ( ) posted Tue, 27 July 2004 at 11:47 PM

PayPal froze PhilC's account because he has some lo-res human figures for sale, and they don't even HAVE genitalia, but since they were unclothed, PayPal decided to shut the account down. He eventually got them to re-open it by agreeing to put "censor dots" over the non-existent genitals. PayPal froze the account of an online publisher of e-books who specialize in romance novels. Apparently, romance novels now count as "harcore pornography". I know of many, many sites and users who have lost their account without warning because PayPal suddenly decided that they were in violation. It's NOT a resonable policy, no matter what PayPal wants to try to claim. bonni

"When a man gives his opinion, he's a man. When a woman gives her opinion, she's a bitch." - Bette Davis


spinner ( ) posted Sat, 31 July 2004 at 1:50 PM

hear, hear. As I asked above - exactly who, and on WHICH basis do they judge nudity at PP ? ~S


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