Can we sue PayPal for this 'virtual goods' travesty?

[Deleted member 111831]

I'd really like to see PayPal forced to honor disputes for people scammed when buying domains or other 'virtual goods'. I'm 0/2 now in filing such claims and in both cases they have added insult to injury with 'we have taken no action against the seller at this time'. These guys are free to go on scamming with the same PayPal account and PayPal completely ignores it because they were selling a non-tangible item.

Whet legal recourse do we have here? I'm less interested in getting my money back than seeing PayPal changed going forward. Would any lawyers be willing to take this case on? I'm sure they would have no shortage of domainers willing to act as 'head of the class' for a class-action lawsuit...

Thanks for any input.

 

[Dale Hubbard]

It's in their T&Cs unfortunately, so no recourse...

 

[Deleted member 111831]

I can put anything I want in my terms and conditions, that doesn't make it legal or prevent people from suing me.

 

[Dale Hubbard]

That's as maybe. But in this particular instance, I think their T&Cs hold water. This has been a bone of contention for years, but I don't remember anyone contemplating or attempting action.

 

[Knocks]

I am going through this right now. Paid for a Flippa auction with Paypal, and the Seller has disappeared. The auction included an actual business with paying customers, including 4 domains, a forums site, and a pay-to-click business (which I was going to convert to a parked domain right away) and a hosting business with active customers. After 48 hours of the Seller disappearing, I filed claims with Flippa and Paypal and used the "virtual goods" category. Within minutes of the dispute, Seller responded by escalating to the claim to a dispute and putting in a fake tracking number. Paypal closed my disputed immediately in Seller's favor.

I called my bank's fraud department, they had me sign a digital PDF form, and issued a provisional credit while they conduct an investigation. The amount was $1,500. The person from the fraud department sounded pretty confident that they would be able to get to the bottom of this.

Seller's name on Digital Point is wh.hurtado. If you recognize this name on DN Forum or any other domain forums, please post it here or message Adam so our members can watch out for other scams.