Report: New York attorney general probes eBay, PayPal user agreements

San Jose, Calif.— The New York attorney general’s office has reportedly notified eBay Inc. and PayPal Inc. that their revised user agreements may raise issues related to consumer protection regulations. According to theNew York Times, the concern regards both companies requiring permission to contact users by phone for reasons including offers and promotions, surveys and debt collection.



The agreements extend to third party debt collection agencies. Users must stop using the commerce platforms and close their accounts to avoid accepting the new agreements. The new eBay agreement takes effect June 15 and the new PayPal agreement takes place July 1. The two companies are expected to separate into two new entities in the second half of 2015.



"Consumer choice and privacy preferences are protected by state and federal laws — including laws that specifically aim to stop companies from using invasive robocalls to promote products to consumers who do not wish to receive them," said Melissa Grace, spokesperson for the New York attorney general’s office.



PayPal representatives told Reuters that its users can opt out of receiving automated calls and that it will respond to the attorney general’s letter of inquiry. eBay has not yet publicly commented.