PayPal, like many other online services, is making changes to its data collection and sharing practices. These changes, set to take effect in 2025, will involve sharing user data with third-party merchants in order to enhance the shopping experience. However, the default setting for these changes automatically opts users in, raising concerns about privacy and potential violations of regulations like GDPR.
Upon discovering complaints from US-based PayPal users on Twitter, I decided to investigate whether the same default setting was applied to UK users. To my surprise, I found that the option to share personal data was already toggled on in my privacy settings. This indicates that users may be opted in automatically, without their explicit consent.
It is worth noting that the policy changes will not be enforced uniformly across all jurisdictions and users. In the UK, for instance, the new data sharing is scheduled to be implemented on October 10, 2024. A policy update from July 8 confirms that in the UK, “merchants are permitted to share customer personal information provided to them by PayPal with their service providers.” This highlights the importance of reviewing and adjusting privacy settings to prevent data sharing if desired.
To opt out of PayPal’s new data sharing, the steps may differ depending on your location. US users should navigate to their profile settings, select “Data & privacy,” and then choose “Manage shared info.” Under the “Personalized shopping” option, toggle the button to opt out.
For UK users, the process involves accessing profile settings, selecting “Data & privacy,” and then clicking on the “Interest-based marketing” tab. Here, you will find two options: “Interest-based marketing on PayPal” and “Internet-based marketing on your accounts.” Toggle the buttons for both options to opt out. These instructions may also apply to users based in the European Union.
PayPal is not the first online service to implement data practices without explicit user consent. LinkedIn recently began training its AI tool using user data by default, prompting users to opt out if they did not wish to share their personal information and posts. Facebook, Instagram, and Twitter (now called X) have also quietly enabled the training of their AI tools using public information from all users.
This auto opt-in approach has garnered criticism, with ethical hacker Rachel Tobac emphasizing the importance of allowing users to choose whether to opt in or not. Companies should not make decisions on behalf of their users without their explicit consent. By demanding more transparent opt-in procedures, we can hopefully foster change in these practices.
While it is unlikely that the business models of online platforms will change in the near future, it is crucial to stay informed about any policy updates from PayPal and other services. Regularly reviewing and adjusting privacy settings can help users maintain control over their personal information.
In conclusion, PayPal’s upcoming data sharing policy changes raise concerns about privacy and user consent. By default, users are automatically opted in to data sharing, which may violate privacy regulations. It is essential for users to review their privacy settings and opt out if they do not wish to share their data. This issue is not unique to PayPal, as other online services have implemented similar practices. By advocating for transparent opt-in procedures, we can work towards a more privacy-conscious digital landscape.
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