United States of America: Federal Trade Commission issued letter to PayPal over discriminatory service denial

On 26 March 2026, the Federal Trade Commission (FTC) issued a letter to PayPal concerning potential violations of Section 5 of the Federal Trade Commission (FTC) Act prohibiting unfair or deceptive acts or practices in or affecting commerce. The letter alleges that PayPal may have denied consumers access to its payment processing services, including digital wallet transactions, based on their political or religious beliefs. The FTC cautioned that such conduct could constitute both an unfair and a deceptive practice under the Act, particularly where it is inconsistent with PayPal's own terms of service or causes substantial harm that consumers cannot reasonably avoid. The letter referenced the Executive Order of 7 August 2025 on fair banking access as further grounds for the FTC's position. PayPal has been put on notice that continued non-compliance could result in a formal investigation and enforcement action.