When Pay Pal invoked these sections in terminating the account of former user Infostream Group Inc., the company brought an action against Pay Pal alleging antitrust violations, breach of contract, fraud and unfair business practices claims. The court concluded that the Pay Pal terms could be found to be ambiguous, because the sexually oriented materials or services,” and, therefore, did not prohibit all such services.
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Infostream responded with the allegation that Pay Pal was invoking its unfairly, because the company continues to provide services to competitor sites that are similar to its own, such as Ashley Madison.com, which urges users to “have an affair,” and Arrangement Finders.com, which promotes “mutually beneficial arrangements” between men and women. Infostream had adequately alleged that obligation had been breached, the court said, if it could show that Pay Pal terminated the account in order to benefit Infostream’s competitors.