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In one case, authorities the Craigslist site for promotion of prostitution, and sustained pressure from state attorneys general in getting the site to drop its adult services section.That kind of attention can be a concern not only for a dating site itself, but also for other online services that provide support to such sites, such as hosting companies and payment services.These online vendors will gladly take your e-payment for any of their offerings.Paypal stores enable you to buy things that you need or want anyway, with the money that you've been accumulating in your account.Infostream is the operator of two sites that “cater to adults looking for a non-traditional dating experience.” For a fee, facilitates “mutually beneficial relationships” between members who refer to themselves as either a “sugar daddy,” “sugar mommy” or “sugar baby.” charges a fee to allow members to “buy and sell the opportunity of going out on a first date.” When Pay Pay moved to dismiss Infostream’s complaint, it was quick to point to media sources that have associated the Infostream sites with purveying sexual services (see Pay Pal memorandum in support of motion to dismiss, n. included alleged accounts of sex-for-pay encounters arranged through the Seeking site by graduates seeking to pay off student loans. But the court allowed Infostream’s breach of contract, breached of the implied covenant of good and fair dealing, and California state unfair competition law claims to stand, at least at this early stage of the litigation.
Lots of web based merchants support this payment method and accept Paypal orders on their shopping sites.
So it’s not surprising that service providers seek to protect themselves contractually from the potential legal and business consequences of being associated with purveyors of shady, unsavory, or downright illegal services.
Pay Pal, the preeminent online payment service, addresses the issue in its User Agreement and Acceptable Use Policy (AUP). 28, 2012), United States District Judge Susan Illston dismissed some, but not all, of Infostream’s legal claims.
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