Entrepreneur sues PayPal for discrimination after it drops website for being “too sexual”
Friday, September 7, 2012/
A controversial American entrepreneur is taking PayPal to court, alleging it dropped his website from using its payment services after calling his company’s services too sexual.
Brandon Wade runs a number of dating websites including whatsyourprice.com, where users can bid on first dates. Another website, seekingarrangement.com, is aimed at self-proclaimed “sugar daddies”, and essentially acts as an escort service.
But Wade says PayPal dropped his websites and is taking the company to court after arguing it services other controversial websites, such as the affair-oriented site AshleyMadison.
Wade has accused PayPal of breach of contract and unfair business practices, although the company had filed in return a motion to dismiss.
But last week, a US District Court judge allowed the motion to continue, although upheld some parts of PayPal’s motion.
Wade told SmartCompany in a statement he’s suffered significant revenue loss as a result of the decision, and noted that other financial companies such as Visa and MasterCard haven’t followed suit.
“PayPal accounted for approx. 20-30% of our revenues, and when PayPal was removed as a payment option, we saw a significant drop in revenue, as well as an increased number of customer complaints. “
“PayPal needs to conduct business in a fair manner. If they have an issue with dating services in general, then they should not accept payment for the entire dating industry.”
Wade’s company, InfoStream Group, is making about $10 million a year from its different websites.
“PayPal needs to conduct business in a fair manner,” Wade says.
“If they have an issue with dating services in general, then they should not accept payment for the entire dating industry. However, if they decide to allow certain dating websites while denying other similar dating websites, they are in effect choosing winners in the industry and hence conducting business unfairly.
The case will now head to trial.
Wade has received some negative press over his businesses, with some comparing them to affair-oriented sites such as AshleyMadison.