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JENNIFER BALABANIAN V. PAYPAL CANADA CO. & AL.

What is the status of the case now?

The Plaintiff and PayPal agreed to settle the Claims. PayPal has agreed to pay a total of $10 million. On March 25, 2021, the Québec Superior Court approved the settlement.

What are the terms of the settlement?

PayPal has paid $10 million into a settlement fund to settle this case and the companion case outside Québec.

The amounts to be deducted from the settlement fund are the legal fees and disbursements for the Plaintiffs’ lawyers and the costs associated with administering the settlement. After those deductions, the amount remaining will be distributed to some of the class members.

Not all class members will receive a payment from the settlement but only to those who meet the criteria of the “Active Group”. The issue is that the Claims affected a large number of people (millions) for a relatively small amount of money per person.

The settlement fund will therefore be distributed on a pro rata basis to class members who meet the following five criteria of the Active Group:

  1. who are Canadian residents who purchased goods or services between January 14, 2017 and August 8, 2018, using PayPal in a currency other than the currency in which the goods or services were offered for sale;
  2. who are PayPal accountholders;
  3. whose PayPal accounts were still open as of August 2020;
  4. who completed at least one transaction with their PayPal account between August 9, 2019 and January 1, 2021; AND
  5. whose PayPal accounts are not subject to any restrictions.

It is anticipated that the pro rata distribution of the settlement to he Active Group will be in the range of CAD $1.85 per person, which will be deposited automatically into their PayPal account. Class members who meet the criteria set out above do not need to take any action to receive a payment.

Where can I get more information about the settlement?

Further information about the settlement is available at www.PayPalClassActionSettlement.ca. You can also send an email to the Claims Administrator at info@PayPalClassActionSettlement.ca or to the lawyers for the Class at info@paypalclassaction.com.

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NOTICE OF APPLICATION FOR AUTHORIZATION TO INSTITUTE A CLASS ACTION:

C.C.M. 500-06-000910-188

IMK LLP has filed an Application for Authorization to Institute a Class Action on behalf of the proposed class representative, Jennifer Balabanian, against the defendants PayPal Canada Co., PayPal Ca Limited and PayPal Holdings Inc. The proposed class includes the following four groups (collectively, the “Class Members”).

Class 1: All Quebec residents who, from the date upon which the Defendants began performing currency conversions in Quebec, purchased goods or services using the Defendants’ payment system in a currency other than the currency in which the goods or services were offered for sale.

Class 2: All Quebec consumers who, from the date upon which the Defendants began performing currency conversions in Quebec, purchased goods or services using the Defendants’ payment system in a currency other than the currency in which the goods or services were offered for sale.

Class 3: All Quebec residents who held accounts with PayPal Canada, who, from the date upon which the Defendants began performing currency conversions in Quebec, withdrew funds from their accounts that the Defendants converted to Canadian dollars before transferring the funds to the individuals’ linked bank accounts and credit cards.

Class 4: All Quebec consumers who held accounts with PayPal Canada, who, from the date upon which the Defendants began performing currency conversions in Quebec, withdrew funds from their accounts that the Defendants converted to Canadian dollars before transferring the funds to the individuals’ linked bank accounts and credit cards.

The global technology platform known as “PayPal” processes online payment transactions around the world and facilitates online global commerce. The defendants operate the PayPal payments system used by the Class Members, perform currency conversions on that platform, and obtain the fees in respect of such conversions charged to the Class Members.

The action alleges that the defendants committed a contractual fault by systematically charging the Class Members undisclosed fees in connection with (a) the exchange of currency in transactions effected using the defendants’ payment systems and (b) the exchange of foreign currency upon withdrawal of funds from accounts held with the defendants. According to the action, the defendants’ contractual disclosure is grossly inadequate, intentionally vague, deceptive and misleading.

The action is seeking the reimbursement of the undisclosed fees charged by the defendants and punitive damages on behalf of all Class Members who are “consumers” within the meaning of the Quebec Consumer Protection Act.

Under Quebec law, everyone in Quebec who is a member of the Class is automatically included unless they decide to opt out. The opt-out procedure will be determined at a later date by the Court if the case is authorized, so there is nothing that you are required to do right now. However, if you wish to share information with us, please contact us at cmckenzie@imk.ca or maber@imk.ca or call 514 935-4460 and ask to speak to Catherine McKenzie or Mouna Aber.

 

If you wish to register as a member to this class action, please send an e-mail to nmigdesyan@imk.ca with your complete information, including your full name, current address, e-mail and phone number.

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