PayPal Backs Down on User Requirement to Agree to SMS Messages

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PayPal Backs Down on User Requirement to Agree to SMS MessagesIf you’re not a big fan of SMS calls and messages to your cell phone — and are a PayPal user — you’ll like PayPal’s recent revision to its newly revised terms of service (TOS).

PayPal has decided to revise the revision as it were. The upcoming TOS does not require its customers to agree to receive autodialed calls or SMS ads, the company said recently.

“We will not use autodialed or prerecorded calls or texts to contact our customers for marketing purposes without prior express written consent,” Senior Vice President and General Counsel Louise Pentland said in a blog post. “We respect our customers’ communications preferences and recognize that their consent is required for certain autodialed and prerecorded calls and texts.”

Pentland added that “the company’s prior notice about the upcoming changes to its terms of service “used language that did not clearly communicate how we intend to contact” consumers,” according to MediaPost.

This backtrack by PayPal comes after the Federal Communications Commission issued a warning to PayPal that its pending TOS (scheduled to take effect July 1) could violate the Telephone Consumer Protection Act.

In effect, the law is designed to stop companies from sending SMS messages to consumers “without their explicit consent.”

“The earlier version of PayPal’s upcoming user agreement required consumers to consent to receiving robocalls or automated texts as a condition of using the service,” explained MediaPost. “After that provision drew attention, the company said that people could opt out of receiving robocalls and texts by logging into their accounts and contacting customer service.”


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Colin Cooper is the CEO of Boost Your Business, the leader in marketing and business development for both large and small scale businesses. As one of the most innovative marketing specialists for over a decade, Colin and his team of business and online experts collate their years of know-how and experiences with the Boost Your Business: Body Armour for Business, an online magazine created to provide a holistic resource avenue for everything business, health, and wellness.