Attached Link: http://www.paypalwarning.com/Default.htm

**WARNING:**

Your Paypal account can be frozen at any time, without advance notice leaving you without your money for weeks (if not forever), and there isn't much you can do about it. Paypal is currently being investigated by regulatory authorities in three states!

Links:

PayPal Warning
Things You Should See
PayPal Wall of Shame

Perhaps most of you won't care, but if any of you decide to try and sell your products and/or artwork from your website using PayPal, this will be especially interesting to you.

This recently happened to me with PayPal when I tried to sell some of my artwork from my website. PayPal froze my account - not allowing me to withdraw funds from my account, to accept or receive payments, to close my account, to remove my bank account and credit card information, etc. - because they said that my site is "offensive" and violates their "Acceptable Use - Mature Audience Policy" with regard to "Adult Material". The only "Adult Material" on my site are a couple of artistic renders of nudes.

On the other hand, Renderosity and similar sites which, mind you, sell fetish props/clothing, bondage props/clothing, as well as similar items and has a crapload of nudity, sexually stimulating images and the like in the gallery - curiously seem to slip by their "Adult Material" policy. When I wrote to PayPal to ask what exactly was so offensive about my site and asked why other sites are allowed to sell things much more "sexually oriented" than anything on my site, all I got was a canned response and a comment that there are no appeals, my account was "closed". (Please note here that "closed" means I cannot access my money or make any transactions except to add money to my account. They still retain all of my financial information such as bank account and credit card account numbers.) They even had the gall write me recently to tell me that my credit card on file with them is about to expire and wanted me to update it!

Excerpts From PayPal's "Mature Audiences Policy" (emphasis added):

Important Note Regarding PayPal's Mature Audiences Policy:

You may not use PayPal to send or receive payments for any "adult" or "sexually oriented" materials or services.

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How does PayPal define "adult" or "sexually oriented" material?
"Adult" or "sexually-oriented" material includes, but is not limited to: - Any visual representation of human genitals presented in such a manner as to suggest sexual activity

• Any visual representation of any form of sexual intercourse involving humans
• Any materials which require that individuals be eighteen (18) or older (depending on the jurisdiction) to view or purchase those materials
• Any non-textual materials clearly designed to sexually arouse the viewer/reader
• Any items which, because of their nature or because of the item description, appear to be designed for use in sexual/adult activity
• Any items which depict human sexual characteristics in a degrading fashion
• **
  **
• Any item that portrays frontal nudity will normally be treated as "adult" material

What is not considered "adult" or "sexually oriented" material?
Material that is not considered "adult" or "sexually oriented" includes but is not limited to: - That which is a small and insignificant part of a catalog, book, periodical, or other work which is not, as a whole, primarily devoted to sexual matters

• Pieces of artwork that may be considered fine art-such as certain paintings, carvings, figurines and other similar materials. Examples include, but are not limited to, Michelangelo's David, certain (but not all) vintage pinup art, a renaissance-style painting of a nude female, or nude cherubs in the form of human infants (in the style of Raphael)

Can material containing nudity ever be sold using PayPal?
Yes. As long as the material containing nudity is not considered "adult" (as defined above) and fits into one of the categories below, you may use PayPal to sell the material outside of eBay, and you may sell or advertise such material on your website listed in PayPal Shops. You will not be allowed to use PayPal to sell these items through eBay's Mature Audience Category. -

• Collectible RisquPostcards
  PayPal permits the sale of postcards that contain some nudity but are not "adult" or "sexually oriented" (as defined above). While persons portrayed in postcards may be topless, scantily clothed, or in mildly suggestive poses, any postcards sold using PayPal should not depict male or female genitalia (frontal nudity below the waist) or strong sexual content. Because this category is for collectibles, these postcards should be at least 10 years old, and the description of the item should include the approximate year of publication.
• Collectible Pin Up Art
  PayPal permits the sale of pinups that contain some nudity but are not "adult" or "sexually oriented" (as defined above). While persons portrayed in pinups may be topless, scantily clothed or in mildly suggestive poses, the pin ups in this category should not depict male or female genitalia (frontal nudity below the waist) or strong sexual content. Because this category is for collectibles, these items should be at least 10 years old, and the description of the item should include the approximate year of publication.
• Pre-1940 RisquPhotographs
  PayPal permits the sale of photographic images that contain some nudity but are not "adult" or "sexually oriented" as defined above. While persons portrayed in these photographs may be topless, scantily clothed or in mildly suggestive poses, the pin ups in this category should not depict male or female genitalia (frontal nudity below the waist) or strong sexual content. In addition, these items should be published prior to 1940, and the description of the item should include the approximate year of publication.
• Items not falling under this category and which are therefore not permitted include items which are intended for use in a sexual setting (such as "bondage" and "fetish" items), items which display sexual activity or portray human genitalia in a "life-like" or realistic fashion, and vibrators intended for use in sexual activity (as opposed to ordinary massagers).

(Entire document can be found at this link - http://www.paypal.com/cgi-bin/webscr?cmd=p/gen/ua/use/index_frame-outside&ed=mature)