NEW YORK (TheStreet) -- eBay (EBAY) is facing questions regarding its actions under consumer protection laws from the office of New York attorney general Eric Schneiderman, The New York Times reports.
The attorney general's office is concerned about eBay's and its soon to be spun off Pay Pal unit's updated user agreement, which says it may contact its 157 million buyers to "collect a debt" or "poll your opinions through surveys or questionnaires" or "contact you with offers and promotions," The Times said.
Shares of eBay are up by 0.36% to $60.69 in mid-morning trading on Thursday.
The agreement will go into effect on Monday and says it will call or text users "at any telephone number that you have provided us" or that eBay has "otherwise obtained."
Law enforcement officials in New York contacted the companies' general counsels this week stating their new policy "raises issues" with consumer protection laws," The Times noted.
"Consumer choice and privacy preferences are protected by state and federal laws - including laws that specifically aim to stop companies from using invasive 'robocalls' to promote products to consumers who do not wish to receive them," a spokeswoman for the Schneiderman's office told The Times.
PayPal released a statement via a blog post saying the new agreement is meant to improve its relationships with customer and that the company has "no intention of harassing you."
Separately, TheStreet Ratings team rates EBAY INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: