HI OCP $6M Settlement with PayPal over Venmo Deceptive Practices
Summary
Hawai'i's Office of Consumer Protection announced a $6 million settlement with PayPal, Inc. and PayPal Holdings, Inc. to resolve a lawsuit filed in December 2022 alleging unfair and deceptive acts or practices through PayPal's and Venmo's e-payment platforms. The settlement resolves claims that PayPal deceptively advertised broad Purchase Protection, user privacy, consistent fund access, and protection from scams and fraud. PayPal has denied the claims while agreeing to pay $6 million.
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GovPing monitors HI Office of Consumer Protection for new consumer protection regulatory changes. Every update since tracking began is archived, classified, and available as free RSS or email alerts — 3 changes logged to date.
What changed
The Hawaii Office of Consumer Protection secured a $6 million settlement with PayPal resolving allegations that PayPal engaged in unfair and deceptive practices by misleadingly advertising Purchase Protection, privacy protections, fund accessibility, and fraud safeguards on its Venmo platform. PayPal filed a denial of the claims but agreed to the payment to resolve the matter.
Peer e-payment platforms and fintech companies advertising consumer protection features should review their disclosures and advertising materials for accuracy. States increasingly scrutinize fintech platforms' marketing claims about consumer protections, fund access, and data privacy, making compliance with consumer protection statutes a priority for digital payment providers.
Penalties
$6,000,000 settlement payment
Archived snapshot
Apr 22, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Release: RELEASE: HAWAIʻI OFFICE OF CONSUMER PROTECTION ANNOUNCES $6 MILLION SETTLEMENT WITH PAYPAL
December 22, 2025 at 3:03 pm
Share FOR IMMEDIATE RELEASE
December 22, 2025
HONOLULU – The Hawaiʻi Department of Commerce and Consumer Affairs Office of Consumer Protection (OCP), on behalf of the state of Hawaiʻi, announced today a settlement with PayPal, Inc. and PayPal Holdings, Inc. (PayPal). The settlement resolves OCP’s lawsuit, filed in December 2022, alleging unfair and deceptive acts or practices through PayPal’s operation of the PayPal and Venmo e-payment platforms. PayPal has denied the claims, but will pay $6 million to OCP to resolve the lawsuit.
The lawsuit alleged violations of Hawaiʻi’s consumer protection laws, including that, to encourage consumers to make and receive payments on PayPal and Venmo, PayPal deceptively advertises that it provides broad “Purchase Protection” for goods-and-services transactions on Venmo, privacy for Venmo users’ sensitive financial information, consistent and easy access to funds, and platforms safe from scams and fraud.
“Hawaiʻi consumers depend on PayPal and Venmo for critical daily tasks like paying rent, receiving wages and compensating child care providers. This settlement is an important step forward in safeguarding the financial marketplace,” stated Executive Director of the Office of Consumer Protection, Mana Moriarty.
A representative from PayPal added, “PayPal takes our responsibility to our customers very seriously, and we continually enhance our products and communications to improve the customer experience. We share the same goal as the state of Hawaiʻi to empower and protect consumers, and are pleased to have reached an agreement on this matter.”
The Hawaiʻi Office of Consumer Protection was assisted in this action by L. Richard Fried, Jr. and Patrick McTernan of Cronin, Fried, Sekiya, Kekina & Fairbanks and Emmy Levens, Molly Bowen, and Diane Kee of Cohen Milstein Sellers & Toll PLLC.
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