PayPal banning Usenet providers because of piracy concern

File hosting sites came under fire from PayPal recently, banning them from their services amid concerns that they were helping fund piracy. Well now PayPal are going after Usenet service providers due to the same concerns.

PayPal has blocked access to their services for several Usenet service providers, and frozen any funds in their accounts. PayPal has, in recent times, changed its policies making it extremely difficult for possible copyright infringing services to avail of their services.

PayPal is already widely known for taking a very aggressive line with BitTorrent and file-sharing sites, but now it seems they are taking an equally hard line with Usenet service providers.

According to Tweakers.net, PayPal cut services to five Usenet resellers on Tuesday, including XSUsenet, EasyUsenet and Usenet4U. Funds have been frozen for 180 days and the providers can no longer accept PayPal payments.

Is it fair that the Usenet services, although there is an element of illegality associated with them and the users that make use of them, are punished just because of their reputation in the piracy world? Maybe not, as very legitimate uses for them exist. But it seems PayPal is laying down the law to help preserve their place in the system, ensuring they are not accused in any way of helping fund piracy.

Source: TorrentFreak

Report a problem with article
Previous Story

Apple updates its upcoming UFO-like campus design

Next Story

Microsoft game development now truly multi-platform

34 Comments

Commenting is disabled on this article.

The FSA needs to take a close look and hopefully ban Paypal in the UK.

Most people think they are run like a bank but instead they can decide at any point to keep your money, take money from your bank or cards. They don't have to give you a good reason and it seems a lot of decisions are final and taken without contact with the customer.

Paypal is just a legalised scam.

another story i seen at TorrentFreak that ended up here a while afterwards lol

info is vague though.

i wonder was the accounts frozen because of pending legal action ?
and changing policy is just an after thought ?
for all we know paypal has been working with orders from the fbi in an investigation.
because seizing their funds is ridiculous.

Well, if you are using paypal for your usenet subscription you already have a lot of problems. How easy do you think it is to get the infos of ALL the people who paid using paypal if they shut it down without any evidence?

Edited by srbeen, Nov 23 2012, 12:02am :

srbeen said,
Well, if you are using paypal for your usenet subscription you already have a lot of problems. How easy do you think it is to get the infos of ALL the people who paid using paypal if they shut it down without any evidence?


Then they'd have a list of people who subscribed to a Usenet service, which in itself is perfectly legal.

dragon2611 said,


Then they'd have a list of people who subscribed to a Usenet service, which in itself is perfectly legal.

See, if they are shutting down usenet payments for piracy, then they think its bittorrent. How many people were threatened by BT use because of their IP traffic? Seems those using usenet with a paypal payment would now be most susceptible to deep packet analysis, moreso then the guy who subscribes via CC/MO/BC.

I guess if I get someone to agree to my own TOS that says I can screw their wife, kick their dog and kill everyone afterwards it's all Ok? Just because this disgusting criminal company your "agreement" doesn't mean it's right or even legal. They do it because they know they can get away with it. Can't stand them either but some clients use them and I have no choice...Hope they get destroyed by a true competitor soon.

Maybe this will open a crack in the market and allow a competitor to gain momentum. I hate having a lot of my payments go through PayPal, however much they make shopping easier and much safer than handing over credit card numbers.

Zagadka said,
Maybe this will open a crack in the market and allow a competitor to gain momentum. I hate having a lot of my payments go through PayPal, however much they make shopping easier and much safer than handing over credit card numbers.

lots of "file locker" sites have now had paypal payments blocked. but for the uk at least there is
paysafe , you hand over your cash to a shop that can sell the paysafe cards "its a printed pin number" and you use that on the site you want to make a payment on. but i guess it wont be long before they disallow payments to filelocker/usent etc..

Though i occasionally use paypal, it always felt like doing business with the devil!
Always had this feeling, don't know why!

Banks and Credit cards work because they allow you to PAY for things, the minute my bank starts telling me that no I cant pay for a service because they dont like that service is the minute I find a new bank.

PayPal is a BANK and no amount of pretending that they aren't is going to change that, if they keep restricting what people can pay for using their system then people will simply stop using them... go figure.

I wouldn't be the least bit surprised if PayPal doesn't end up in court sometime in the future for violation of some kind of banking law.

Xionanx said,
Banks and Credit cards work because they allow you to PAY for things, the minute my bank starts telling me that no I cant pay for a service because they dont like that service is the minute I find a new bank.

PayPal is a BANK and no amount of pretending that they aren't is going to change that, if they keep restricting what people can pay for using their system then people will simply stop using them... go figure.

I wouldn't be the least bit surprised if PayPal doesn't end up in court sometime in the future for violation of some kind of banking law.

Paypal is a payment processing company. Not a BANK.. They move money around, like from a BANK to a merchant.. They follow NONE of the pre-established rules BANK's have to, and they are an american company easily swayed by big corporation.. Guess next they will stop you from paying power, internet, or computer components as they are pirating tools too.

srbeen said,

Paypal is a payment processing company. Not a BANK.. They move money around, like from a BANK to a merchant.. They follow NONE of the pre-established rules BANK's have to, and they are an american company easily swayed by big corporation.. Guess next they will stop you from paying power, internet, or computer components as they are pirating tools too.

No no no, pirating tools is okay, because it's not call pirating it's called stealing. Only things they attach the word pirate to are susceptible to this. I fear for Somalia...

Brian M said,
I wonder how much the RIAA put into PayPal's pockets for this?

Someone needs to bring paypal down a peg or two imo.

The money they froze + bags with $ on them.

SierraSonic said,
The money they froze + bags with $ on them.

PayPal doesn't keep the assets of frozen accounts.

The money is accessible again after 180 days.

Paypal is gonna end up facing a spitstorm ... think we need a credit union version. Paypal acts like a bank. Usenet is a free speech area. Try as one might it's connected to IRC (mIRC or pIRCh) and newsgroups. Utterly free speech and they happen to be yellowing it. Chinese Paypal??? If one is sharing thru usenet sure is a pain in the a** way of doing it. (sorry thats the only expletive I can't rename.. Say hope they don't pull gog.com someday just because someone pays paypal a bunch of $$ to say the deals made at gog for DRM free games shouldn't be legal. Shadow Warrior anyone? First time that unreleased expansion ever worked right..

cRuNcHiE said,
Freezing funds in their account is basically theft in my opinion. Who made them judge, jury?

They get away with it thanks to their TOS, but I agree, it's absolutely shady and the companies cannot work with the money, e.g. earn on the interests, invest, etc.

GS:ios

cRuNcHiE said,
Freezing funds in their account is basically theft in my opinion. Who made them judge, jury?

This is my biggest problem with PayPal and why I use them as rarely as possible. It is one thing to change the terms to disallow a previously allowed merchant, but it is another thing entirely to seize their money in the process.

There needs to be a strong limiting of the power of TOS agreements.

Shiranui said,
So, what are some good PayPal alternatives?

None, that I no of really. Just don't particularly like using them. Paypal/Ebay sent debt collectors after me as I owed £1 in fees.

matt4444 said,

None, that I no of really. Just don't particularly like using them. Paypal/Ebay sent debt collectors after me as I owed £1 in fees.