PayPal has returned to its plan to change its user agreement and to cool concerns that it was asking people to sign up to automated marketing calls.
The plan was immediately opposed by citizens and privacy organisations, and PayPal's change of mind has been welcomed by the head of the US Federal Communications Commission.
Louise Pentland, senior vice president, general counsel and company secretary at PayPal, said that the firm had not lived up to its own internal standards and had confused users with the language used in the proposed agreement.
"We value our relationship with our customers and work hard to communicate clearly. Recently, however, we did not live up to our own standards," she said in a blog post.
"In sending our customers a notice about upcoming changes to our User Agreement we used language that did not clearly communicate how we intend to contact them.
"Unfortunately, this language caused confusion and concern with some of our customers. To clear up any confusion, we will be modifying the terms of Section 1.10 of our User Agreement."
PayPal & eBay’s plan to make robocalls & send text messages to users has raised red flags w/federal & state officials http://t.co/1gyjZBzawf— PYMNTS (@pymnts) June 15, 2015
Section 1.10 mentions the possibility of automated calls as part of fraud detection, account confirmation or the collection of monies owed. PayPal said that the calls will not be used to deliver marketing communications, unless the user has explicitly consented.
"Customers can continue to enjoy our products and services without needing to consent to receive autodialled or pre-recorded calls or texts," she added.
"We respect our customers' communications preferences and recognise that their consent is required for certain autodialled and pre-recorded calls and texts.
"Customers may revoke consent to receive these communications by contacting PayPal customer support and informing us of their preferences."
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