Not upheld: Goods and services under S75 complaint against PayPal UK Ltd

Decision detail

Summary

Miss C purchased an item through PayPal that developed a fault after three days of use. She raised a buyer protection claim selecting 'significantly not as described' as the reason, but PayPal declined it, stating the item had been used extensively. Miss C disputed this characterization and complained that she was forced into an inappropriate category and that PayPal failed to consider the nature of the fault. The ombudsman found that PayPal's buyer protection policy is designed to protect consumers receiving broken or unusable items, not as a warranty for items that develop faults after use. Since the item was usable when received, the claim did not fit PayPal's policy criteria, and PayPal acted fairly in declining it. Miss C was advised to consider pursuing a claim against the seller under the Consumer Rights Act 2015.

The Ombudsman's reasoning

The ombudsman found that PayPal's buyer protection policy is optional and not regulated as consumer law. The policy is designed to protect consumers who receive broken or unusable items, not as a warranty for items that develop faults after use. Since Miss C's item was usable when received and only developed a fault after three days of use, it did not fit any of PayPal's stated SNAD criteria. While Miss C may have statutory rights under the Consumer Rights Act 2015 against the seller directly, PayPal as a payment facilitator is not obligated to extend the same protections. PayPal acted fairly in declining the claim based on its policy terms.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website