PayPal Faces Proposed Class Action Over Anti-Steering Clause (1)

Leading payments company PayPal Inc. was hit with a proposed antitrust class action that could cover tens of millions of members, alleging that the agreements it forges with merchants prevents them from steering customers to other forms of payment.

Those anti-steering provisions violate the Sherman Act and California antitrust law, a group of consumer plaintiffs alleged in a lawsuit filed Thursday in the US District Court for the Northern District of California against the e-commerce company and its parent, PayPal Holdings Inc.

The restrictions function as a price floor, the plaintiffs alleged. That means if a retailer has signed ...