PayPal is a global technology platform designed to process online payment transactions. This proposed class action is brought on behalf of all Canadian residents, other than residents of Quebec, who have used PayPal for transactions involving a currency exchange. A companion case is being pursued in Montreal on behalf of Quebec residents. Both lawsuits name as defendants two Canadian companies, PayPal CA Ltd. and PayPal Canada Co., and two U.S. companies, PayPal Holdings Inc. and PayPal, Inc. The proposed representative plaintiff for the Ontario case is Leonid Kaplan, and the proposed representative plaintiff in Quebec is Jennifer Balabanian.
The claims makes two categories of allegations. First, they allege that for the period between January 14, 2017 and August 8, 2018, Canadian users of PayPal who purchased goods and services were charged undisclosed currency conversion fees and/or an inflated exchange rate.
Second, they allege that for various periods between 2006 and August 8, 2018, PayPal performed currency conversions without authorization for certain types of transactions and for withdrawals from users’ PayPal accounts.
The Ontario claim alleges that the defendants’ conduct was 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. The Quebec claim is similar under Quebec’s Civil Code and Consumer Protection Act.
None of the allegations against the defendants has been proven in court.
A hearing to determine whether the case in Quebec may proceed as a class action is currently scheduled for April 2020 in Montreal. A similar hearing for the Ontario case has not yet been scheduled.
If you are resident in Canada and have used PayPal for transactions involving currency conversion, we would like to hear from you. Please contact us.
Last Updated February 2020
- Statement of Claim issued November 24, 2017