How to opt out of Venmo’s new arbitration clause

Image: Venmo

If you use the Venmo app, you probably received an email recently explaining that the company is making changes to its user agreement and that you will not become part of a class action suit. It is not easy to opt out of it.

We'll tell you how to opt out, but first we'll give you some information about the clauses.

Companies and consumers have become very fond of the use of arbitration clauses. The article explains how to opt out of the arbitration clause when Apple added a credit card. It is not surprising. Most of the advantages of the company are put in the court of the company when you agree to go to arbitration. You can't become part of a class action suit if you don't have an agreement with the company. Instead, the case is reviewed by an arbitrator who makes a ruling that cannot be appealed.

This is exactly what the clause that Venmo is adding is meant to do. It isn't surprising that such a clause would eventually be added, as it was already done by PayPal in 2012 The previous user agreement included a class action waiver. On a lay reading, the terms of that clause seem to be less burdensome.

There have been cases in which judges decided that class action suits are unconscionable and unenforceable, and that is one thing to keep in mind.

If you decide to opt out of Venmo's arbitration clause, you will retain your right to join a class action suit. If you don't feel like wading through the whole thing, here's the short version of what you need to do.

• Download and print out the Venmo Opt-Out Notice Form
• Fill out the entire form
• Mail it (yes, the kind of mail with an envelope and a stamp) to:

PayPal, Inc.

Attn: Litigation Department

Re: Venmo Opt-Out Notice

2211 North First Street

San Jose, CA 95131

There is a time limit laid out at the bottom of the form. If you accepted the user agreement for the first time after May 23rd, 2022, then you have to mail your form up to 30 days after that date. If you have been a member for more than a year, you have until June 22nd, 2022.

If you want to be sure, it's a good idea not to just drop the form in the mailbox. Send it so it can be traced, or even better, so someone has to sign for it. This will cost more, but if you plan to use the service extensively, then it's worth it.