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Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 9699
Experience:  30 years of corporate, litigation and international law
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Recently I opened what would be considered a high risk internet

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Recently I opened what would be considered a "high risk" internet business and decided I would like to use Paypal. Reading their terms of service it states that I must obtain prior approval before I am allowed to use their services for such activities. So I contacted them asking how I can obtain said approval and after an exchange of about 7 or 8 emails it boiled down to "We are no longer accepting approval for high risk accounts and if you find anyone that is breaking our acceptable use policy please report them immediately so we can take appropriate action."

As of late, it is true they have been hammering down on pretty much all of the people in the industry my business falls under EXCEPT for the top 2-3 industry leaders who generate them massive revenue each year. Thus I reported those leaders, and it has been over a month (their usual shut down time) and still no action.

So my question to you: Are there any laws dealing with small business discrimination that make this illegal?
What specifically do you want to know and accomplish?
Customer: replied 6 years ago.
As I said at the end, "Are there any laws dealing with small business descrimination that make this illegal?" Basically: by allowing large groups to utilze their services but not even give new emerging businesses a chance to go through the proper steps to seek approval, can they do that? I was thinking doing what they are doing would fall under the same lines as not giving equal opportunity to women or minorities, etc.
I do not see a claim here but I will opt out and see if a colleague sees another avenue

Any company has what is known as a unilateral right to refuse to deal. This means a company for any reason can refuse to deal with a potential customer so long as it is not unlawfully discriminatory. Pay Pal is completely within its rights and there is no recourse against them.


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This communication is not intended as legal advice. A local attorney should always be consulted for legal advice. No client/attorney relationship is intended or created by this communication.

Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 9699
Experience: 30 years of corporate, litigation and international law
Richard - Bizlaw and 8 other Business Law Specialists are ready to help you

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