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Expert Report Alleges PayPal Broke EU Privacy Rules by Using Transaction Data for Ads

PayPal says it is reviewing the findings, with no public enforcement action to date.

Overview

  • The analysis by Netzwerk Datenschutzexpertise cites multiple breaches of the GDPR and Germany’s ZAG, focusing on the use of sensitive financial data beyond payment services.
  • Investigators say the Offsite Ads program unlawfully repurposes purchase information to target users on external platforms, contravening purpose limitation rules.
  • Consent mechanisms are described as preselected and uninformed, with advertising personalization set by default in a way the report says violates privacy by default requirements.
  • The report highlights opaque sharing with roughly 600 potential recipients, questions the legality of cross‑border transfers and PayPal’s Binding Corporate Rules, and says users cannot trace where data goes.
  • Authors criticize blanket retention of data for up to ten years after contract end and insufficient transparency about profiling and automated decisions; PayPal states it is examining the report.