Brooklyn CBD retailer sues PayPal over blocked service

A New York CBD retailer is challenging payments giant PayPal in court over blocking it for allegedly selling controlled substances.

The lawsuit filed Monday by Friends NYC in Brooklyn claims that PayPal blocked it in December and put a hold on $9,000 while it investigated a possible violation of its terms of service.

By May, PayPal had concluded the retailer was improperly using it to transact sales of “narcotics, steroids, drug paraphernalia, certain controlled substances, or other products that present a risk to consumer safety.”

Friends NYC argues that PayPal is misinterpreting the 2018 Farm Bill and seeks the return of the $9,oo0 plus interest and legal fees.

“Their funds were taken without due process.” Friends NYC attorney Dorothy Riggio told Law360.

PayPal has not yet responded to the claim.