Consumer complaint received 2022-07-25
Company: Paypal Holdings, Inc
State: FL
Product: Money transfer, virtual currency, or money service
Sub-product: Mobile or digital wallet
Issue: Confusing or missing disclosures

Complaint:
Nature of Dispute : On or about XX/XX/2021, I sold to a long-time customer a Model XXXX XXXX XXXX XXXX for {$2600.00}. This customer paid for this revolver using PayPal, depositing the money into my PayPal account. I subsequently learned, having received an e-mail from PayPal on XX/XX/2021, that my account, and thus my access to these funds, was being " permanently limited, '' i.e. 
my access to same was denied. It is my understanding that this limitation was put in place based on the determination by Pay Pal that this transaction, involving the sale of this Model XXXX XXXX XXXX Revolver, violated PayPal 's User Agreement and Acceptable Use Policy. 

Specifically, I was advised that the transaction violated the specific provision in the Acceptable Use Policy that prohibited " the sale of ammunition, firearms, or firearm parts or accessories. '' But, the XXXX XXXX XXXX XXXX XXXX is not a " firearm '' as that term has legal connotations. 
While the XXXX XXXX XXXX XXXX XXXX XXXX have been at one point a firearm in the true meaning of the word, back in XXXX  and during the Civil War, it has no capability of being a firearm now. It is not operational, nor is there any ammunition available for same. Its value is in its historical significance. It is a historical antiquity with significant value in that regard. But it has no value as a firearm simply because it can not operate as one. Rather, it constitutes an " antique firearm The federal government agrees. In 26 U.S.C Section 5845 ( g ), the term " antique firearm '' means " any firearm. 
.. using fixed ammunition manufactured in or before XXXX, for which ammunition is no longer manufactured in the United States and is not readily available in the ordinary channels of commercial trade. '' 26 U.S.C. Section 5845 ( g ). An antique firearm is specifically excluded from the Gun Control Act. See 18 U.S.C Sections 921 ( a ) ( 3 ) and ( 16 ).

Thus, this transaction did not involve the sale of a " firearm '' but rather the sale of an " antique firearm. '' Indeed, 26 U.S.C Section 5845 ( a ) specifically states, " [ t ] he term 'firearm ' shall not include an 'antique firearm ' or any device Which, although designed as a weapon, the Secretary finds by reason of the date of its manufacture, value, design, and other characteristics is primarily a collector 's item and is not likely to be used as a weapon. This XXXX XXXX XXXX XXXX XXXX was manufactured before XXXX ( in XXXX in fact ), is inoperable, and holds no value beyond its historical value to a collector. As such, its sale was not and is not prohibited by the User Agreement or Acceptable Use Policy. 

Although the purchase price of this revolver was {$2600.00}, I had at the time of the transaction other money in my PayPal account from other activities and transactions, which had no connection to this transaction in question, and had never been " questioned '' by PayPal. Indeed, at the time of the permanent limitation placed on my account, the account had a value of {$12000.00}. I was subsequently informed in XXXX of XXXX, following the 180-day hold period, that the entire sum had been claimed by PayPal as XXXX damages caused by Acceptable Use Policy violation. ''

Company response to consumer: Closed with explanation