PayPal, the well-known internet payment company has told California NORML that it will no longer accept payments to their “type of business” because they accept listing payments from cannabis-recommending physicians.
After years of offering free listings to physicians and collectives at their website CaNORML began charging a yearly listing fee to cover their costs last year.
PayPal froze CaNORML’s account in June, saying that by accepting listing fees from collectives, they were violating PayPal’s Acceptable Use policy, which clearly states, “you may not use PayPal in the purchase or sale of narcotics.” Although narcotics were not being sold over the CaNORML site, they did accept listing fees from collectives that dispense medical marijuana, which is legal under California state law, it is definitely illegal under federal law. This practice was stopped, however they did continue to accept payments online from doctors, attorneys, and members and this is why PayPal has stopped CaNORML from utilizing their payment site.
Although CaNORML argued that under a ruling upheld by the U.S. Supreme Court (Conant v. Walters, 2003), physicians have the first amendment right to discuss and recommend medical marijuana for their patients, although they may not distribute it or help patients in finding it. PayPal notified them that, “We are not arguing the legality of this issue; we are simply stating that we have made the business decision to not be involved with this type of business.”
PayPal should be applauded for standing up and making the right business decision.
Send letters of support to:: PayPal, 2211 N 1st St, San Jose 95131 (408) 376-7400
Below is a copy of letter that CaNORML says was sent to them by PayPal (Please note this was posted on NORML’s web site so we can not guarantee the accuracy of the letter).
Hello,
We appreciate the fact that you chose PayPal to send and receive payments for your transactions. Under the Acceptable Use Policy, you may not use PayPal in the purchase or sale of narcotics, steroids, certain controlled substances, products that present a risk to consumer safety or drug paraphernalia. PayPal makes such decisions after reviewing laws, regulations and other actions by governmental agencies, other available evidence, and marketing content related to the product.
The complete Acceptable Use Policy can be found at the following URL:
http://www.paypal.com/cgi-bin/webscr?cmd=p/gen/ua/use/index_frame-outside
To learn more about the Acceptable Use Policy, please refer to our Help Center page here: https://www.paypal.com/cgi-bin/helpweb?cmd=_help
We are hereby notifying you that, after a recent review of your account activity, it has been determined that you are in violation of PayPal’s Acceptable Use Policy regarding your sales at http://www.canorml.org/prop/collectivetips.html.
PayPal cannot be used to accept fees for listing information related to marijuana dispensaries, delivery services and cannabis physicians.
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