HAWAIʻI OFFICE OF CONSUMER PROTECTION ANNOUNCES $6 MILLION SETTLEMENT WITH PAYPAL

News Release from DCCA, 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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