PayPal is a global technology platform designed to process online payment transactions. This proposed class action is brought on behalf of all Canadian residents who have used PayPal for transactions involving a currency exchange and who have withdrawn foreign currencies from their PayPal accounts. The lawsuit names as defendants two Canadian companies, PayPal CA Ltd. and PayPal Canada Co., and PayPal Holdings Inc., a U.S. public company. The proposed representative plaintiff is Leonid Kaplan, an Ontario resident.
The claim alleges that Canadian residents who use PayPal to purchase goods and services are charged undisclosed currency conversion fees. It further alleges that when users withdraw foreign funds from their accounts, PayPal improperly converts those funds to Canadian dollars without user authorization and charges undisclosed currency conversion fees. Finally, it alleges that PayPal fails to allow users to designate their credit cards to perform currency conversions during online checkout and instead PayPal performs the currency conversions itself to generate fees.
The claim alleges that the defendants’ conduct is in breach of the standard form user agreement, was contrary to consumer protection legislation and resulted in unjust enrichment of the defendants at the expense of the proposed class.
None of the allegations against the defendants has been proven in court.
Last Updated November 2017
- Statement of Claim issued November 24, 2017