Class Action Lawsuit Against PayPal Claims They Favored Buyers Over Sellers in Disputes

PayPal is being sued by a class-action lawsuit filed by Anthony Ferrigno, a California based lawyer, who alleged that PayPal has favored buyers during transactions over sellers.

Over the years, a large number of sellers have found that when there is a dispute between the buyer and seller, in most of the cases PayPal has sided with buyers.

“Sellers beware! PayPal focuses on buyers” and “They [PayPal] will always side with the buyer” type social media posts are often too common to be ignored.

CBS Los Angeles published an article mentioning a case involving a buyer and a seller name Joanna Santiago.

According to the story published by CBS, when Ms. Santiago sold her vintage Louis Vuitton bag online for $800 and got delivery confirmation from the shipping company, she was logically happy to have made a successful transaction with PayPal.

However, soon after getting the delivery confirmation message, the buyer filed a dispute with PayPal claiming the package was never delivered.

Although Ms. Santiago provided evidence to PayPal of the delivery, the dispute was ended in favor of the buyer, leaving the seller in dismay and a $800 hole in her pocket.

“I’m left now with a missing bag and PayPal withholding the money from me,” noted Ms. Santiago.

Commenting on why he decided to file the class-action lawsuit, Anthony Ferrigno, told CBS that “when eBay and PayPal promise that they are going to do what they can to protect the sellers and keep their money safe, they have a duty to do that in our view under the law

“They [PayPal] have a policy, we think, [where] the buyer’s almost always right, and the buyer almost always wins,” he added.

But, PayPal disagreed with Mr. Ferrigno and a spokesperson told CBS that they have “carefully reviewed the complaint” and did not “believe [that] there is any merit to this lawsuit.” “We plan to vigorously defend ourselves,” said the PayPal spokesperson.

Regardless of the outcome of this lawsuit, it will certainly force PayPal to review its policies towards sellers, who have long alleged that they did not receive a fair solution from the company when there was a dispute with the buyer.