PayPal engaged in this viewpoint-based censorship despite stating that, in determining whether a user violated its acceptable use policy, it would only consider conduct actually involving the use of PayPal. PayPal’s decision to kick Plaintiff off its platform had nothing to do with such activities." While one can claim that PayPal, as a private company, has every right to ban whomever it wants, even if it results in outright discrimination, Jones disagrees and to plead his case invokes the California Unruh Civil Rights Act:
PayPal discriminated against Plaintiff based on its political viewpoints and politically conservative affiliation, thus violating the California Unruh Civil Rights Act. PayPal is engaged in unfair business practices by enforcing its contractual terms in an unconscionable manner, namely arbitrarily banning Plaintiff from its platform for off-platform speech despite never claiming it might ban users for off-platform activity. In doing so, it also violated the implied covenant of good faith and fair dealing with Plaintiff.
What is Unruh?
The Unruh Civil Rights Act (“Unruh”) guarantees that “all persons” are “entitled to full and equal accommodations, advantages, facilities, privileges, or services in all business establishments of every kind whatsoever.”
Although the Unruh Act specifically forbids business establishments from discriminating based on “sex, race, color, religion, ancestry, national origin, disability, medical condition, genetic information, marital status, sexual orientation, citizenship, primary language, or immigration status”, this statutorily enumerated list is illustrative, and not exhaustive, of the characteristics on which business establishments may not discriminate.
Discrimination based on political affiliation or ideology is forbidden under Unruh, as it is a personal characteristic.
So as Jones finds his business impaired as a result of the ban...
PayPal is restraining Plaintiff’s commerce because it is politically conservative and sells to a conservative audience. PayPal’s actions amount to discrimination based on political viewpoint and affiliation, which is forbidden under Unruh.
... a ban which is not justified based on the acceptable use policy:
The UA provides several examples of situations where PayPal might issue a limitation, including “[i]f we reasonably believe you have violated the Acceptable Use Policy.” None of these examples allow PayPal to issue a limitation based on off-platform activity, and all the examples are geared towards activity that involves risky, fraudulent, or illegal financial transactions.
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