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    Rising Privacy Issues Arising from PayPal’s Revised Data Sharing Practices

    PayPal has allegedly updated its privacy policy to enable the sharing of user information with outside entities. Users are presented with the choice to decline this data sharing.

    A recent article from 404 Media reports that PayPal has automatically signed up users for data sharing with marketers without securing explicit approval. The company claims this alteration aims to provide a “customized shopping experience” for its clientele.

    Users uncover opt-out option for third-party data sharing, igniting discussion on digital privacy

    The piece features a screenshot of a function titled “Personalized Shopping.”

    This functionality is characterized as: “Allow us to communicate products, offers, and rewards that might pique your interest with participating retailers.” Beneath the toggle, PayPal notes that it anticipates enhancing enriched experiences for users by early summer 2025, granting users the ability to modify their data sharing settings at any time.

    In addition, there is a link directing to a pop-up that states, “PayPal will provide recommendations to participating retailers based on your purchasing preferences and history. Your data assists these retailers in showcasing products, offers, and rewards that you may find enticing.”

    However, the primary concern is that this setting was established as default. This raises moral questions, as it appears to be a strategy to gather data ahead of introducing the “Customized Shopping Experience.” PayPal is not the first to implement such intrusive marketing tactics, and it is unlikely to be the last. For further information, please review their Privacy Policy (Internet archive link).

    How to disable data sharing on PayPal

    To deactivate data sharing, proceed along this pathway: Settings > Data & Privacy > Manage shared information > Personalized shopping. Turn off the option under Personalized Shopping.

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    Several users have had success in opting out of interest-based marketing via https://www.paypal.com/myaccount/privacy/.

    Neither Martin nor I could locate this setting in our accounts based in Germany and India, respectively. However, one user from France noted that, in spite of the GDPR protections, this option was accessible and activated in their account.

    I discovered an option to decline third-party cookies (including those from Google, Facebook, and LinkedIn) in the Manage Cookies section, but this is different from the contentious data-sharing feature introduced by PayPal. These cookie preferences relate to the advertisements displayed by PayPal.

    Did PayPal inform users about this modification?

    Some users have reported receiving an email from PayPal regarding updates to the Privacy Statement. In this correspondence, PayPal states: “Our updated Privacy Statement explains how we will utilize the information gathered about you after November 27, 2024, to inform participating retailers about products, offers, and rewards that may interest you. You can opt-out of this at any moment through your profile settings under ‘Data and Privacy.’”

    Additionally, another user highlighted that the email indicated that residents of California, North Dakota, or Vermont would not have this setting automatically enabled and would need to activate data sharing to enjoy a personalized experience.

    It’s plausible that this email may have ended up in the spam folder, as I did not receive one, possibly due to the region-specific implementation.

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    Image Source: Tero Vesalainen / Shutterstock

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