Just a heads up (in case others were doing this)
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Original Post
Yesterday I received an email from PayPal limiting my account. I had been running a promotion that said "Buy anything from November 1, 2010 - December 12, 2010 and be entered to win ___________" I honestly did not know this was a violation of PayPal's terms and conditions. I have never had my account limited before (I've had it for 10 years plus) so I was a complete wreck. I complied with their demand to remove the promotion and submit for review. My account was reinstated today. Here is part of the email I received:
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 on www.etsy.com/shop/egyptianruin?ref=seller_info enabling buyers to be entered into a drawing.
The PayPal User Agreement states that PayPal, at its sole discretion, reserves the right to limit an account for any violation of the User Agreement, including the Acceptable Use Policy. Under the Acceptable Use Policy, PayPal may not be used to send or receive payments for activities that involve an entry fee and a prize, such as raffles, drawings or lotteries. Due to applicable laws and industry regulations, we do not offer approval for these types of transactions.
The complete Acceptable Use Policy can be found at the following URL: 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: www.paypal.com/cgi-bin/helpweb?cmd=_help
In order to comply with the Acceptable Use Policy and avoid the limitation or closure of your account, you will need to:
1. Remove the raffle being held on your website(s),
www.etsy.com/shop/egyptianruin?ref=seller_info,
egyptianruin.deviantart.com/journal/35959619/
2. Submit the online Acceptable Use Policy affidavit
Posted at 7:47pm Nov 14, 2010 EST
Responses
I don't think you can have a giveaway that involves sales. I do giveaways but you don't have to buy anything to enter.
You should be careful, each state has different laws for that.
Posted at 7:52pm Nov 14, 2010 EST
wow... how did they find out? And it's not really a lottery or raffle.. they were actually buying something right? If they have a problem with what you were doing then what about all the people who do BOGO's. It's kind of the same thing.
Posted at 7:52pm Nov 14, 2010 EST
Yeah, I had one friend and seller on Etsy change his promotion because of it then I noticed another Etsy team that I follow having a promotion like this too. Even if it's on a blog they still find it - thus why they linked to my deviantART page too. I was a freaking mess. Tears and sobbing on the phone with PayPal who assured me that since this was my first violation it was just a warning but if I did it again it would be far worse.
Posted at 7:53pm Nov 14, 2010 EST
jess, I think the difference is with bogo, everyone gets it , with having to buy something to be entered in a giveaway makes it more of a raffle, and that subjects you to different regulations in different states
Posted at 7:54pm Nov 14, 2010 EST
jesspeterson
wow... how did they find out? And it's not really a lottery or raffle.. they were actually buying something right? If they have a problem with what you were doing then what about all the people who do BOGO's. It's kind of the same thing.
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One of my buyers put in their PayPal notes "Hope I win the raffle" even though I didn't call it a raffle but more of a giveaway to buyers who usually buy from me anyway. I never have had a B1G1 promo before but after this fiasco I don't ever want to hear or think of the word promo again.
Posted at 7:55pm Nov 14, 2010 EST
egyptian, I am appalled that paypal is monitoring your sites, and I don't know why they care
Posted at 7:55pm Nov 14, 2010 EST
