PayPal Faces Revived Lawsuit Over Charitable Giving Platform

PayPal Inc. must defend reinstated claims that it mishandles charitable donations made through PayPal Giving Fund because a trial court improperly sent the case to arbitration.

The lower court erred when it found that Terry Kass had undisputedly accepted the terms of a 2012 user agreement, the US Court of Appeals for the Seventh Circuit ruled Thursday in an opinion by Judge David F. Hamilton.

The district court must hold a trial to determine whether Kass received notice of an amended user agreement “and implicitly agreed to the new arbitration clause,” Hamilton said.

When Kass created her PayPal account in ...