ATTORNEY GENERAL KING REACHES AGREEMENT WITH PAYPAL TO PROTECT CONSUMERS

The Alabama Attorney General issued the following news release:

Attorney General Troy King announced today that the State of Alabama has joined 27 other states in entering into an Assurance of Voluntary Compliance or Discontinuance (AVC) with PayPal, Inc. to resolve the states' concerns about PayPal's business practices. PayPal, which developed as an alternative to merchant accounts for internet sellers, offers money transfer services to its users through credit card protocols, electronic funds transfer banking protocols, lines of credit issued by third parties, and other financial transfer protocols.

This AVC provides important protections to consumers using PayPal. The agreement ensures that PayPal will clearly disclose important terms and conditions at the time users enroll in PayPal and when users perform transactions using PayPal. The agreement makes information more accessible to users by requiring changes to the way PayPal uses hyperlinks and multi-page documents. The agreement also requires that PayPal disclose to the user at the time of purchase which funding source (for example, bank account or credit card) will be used and how the user can select an alternative funding source. The user must also be told which consumer protection remedies apply to transactions using each type of funding source. PayPal also will be required to provide users with contact information, including a customer service telephone number.

Attorney General King commented, "In this day when we conduct an increasing amount of business online, without the benefit of personal contact, consumers need to be fully informed about their rights regarding these transactions. Today's agreement provides important protections for Alabamians by enabling them to easily obtain all of the facts they need to be informed consumers when using PayPal's services."

The settlement is a voluntary agreement between PayPal and the 28 states which are signatories to the agreement. PayPal does not admit to, and has denied, any wrongdoing.Contact: Joy Patterson, 334/242-7491; Suzanne Webb, 334/242-7351.

Joy Patterson, 334/242-7491; Suzanne Webb, 334/242-7351.