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23 Attorneys General Band Together to Make PayPal’s Charitable Donations Platform More Transparent

 

  • A bipartisan coalition of 23 AGs, led by Connecticut AG William Tong and Nebraska AG Doug Peterson, reached a settlement with PayPal Charitable Giving Fund, Inc. (“PPGF”), the charitable arm of e-commerce platform PayPal, to resolve allegations that PPGF provided inadequate information and disclosures to donors making charitable contributions through its platform.
  • According to New York AG Letitia James’ office, the AGs jointly investigated allegations that PPGF aggregated and distributed donor-contributed funds more quickly if the donor had a PayPal account than if the donor did not have a PayPal account, and failed to adequately disclose that discrepancy to donors. Moreover, in certain instances, PPGF allegedly redirected contributions from the donor-selected charities to other, similar organizations without notifying the donors of the change.
  • Under the terms of separate settlement documents, PPGF agreed to amend its disclosures to inform donors they are contributing to PPGF rather than directly to the charity of their choice, the timeframe in which a charity may receive the donated funds, and when their contributions are redirected to a different charity than the donor selected. PPGF also agreed to pay $200,000 to the National Association of Attorneys General’s Charities Enforcement and Training Fund, which defrays investigation and litigation costs and provides training and education to state charities regulators.