The Loadout Blog

News|Intel Brief

Introduction

In late February, during the winter freeze that snapped through the heart of America and ravaged the great state of Texas leaving millions vulnerable. A winter storm that resulted in the coldest temperatures in Texas in over a 120 years. A storm so devastating that it left millions of Texans without power, in below zero temperatures at times, along with food and water shortages. During a time of crisis, Scorpion 6 Knives endeavored to assist the hurting communities of Texas with a fundraiser supporting local Texas charities. That fundraising drive by Scorpion 6 raised over $6k in funds for those charities.

The following week Scorpion 6 Knives owner Shane tried to access those funds to cut checks to those respective charities. When he attempted to retrieve that money he was informed that his PayPal account had been permanently suspended and he had been locked out of his Venmo account. PayPal through an email informed him that Scorpion 6 was in violation of the company’s Acceptable Use Policy. Venmo locked him out of his account due to “security alerts”. Neither commerce site gave clear guidance on the bans and restricted access to the $6k raised.

Scorpion 6 Knives Vs. PayPal & Venmo

After PayPal and Venmo suspended and blocked his account Shane reached out to PayPal and Venmo for clarification on the suspension and when he could get access to the monies for the charities.

In the meantime, while waiting for those responses Shane of Scorpion 6 Knives reached out to his social media platforms to let his audience know the facts of the situation. In his video posted on February 24th to his Scorpion 6 Instagram page Shane explains the ordeal with PayPal and Venmo.

During the informational video Shane informed his audience that he had been doing business with PayPal for five years with no issue. Then, his company was hit out of the blue with this permanent suspension of services. He was always under the understanding and perception that knives he sold didn’t fall under Prohibited Items under the Acceptable Use Policy. All his knives were sold within the guidelines of local, state, and federal laws. Scorpion 6 would not sell you a knife you couldn’t legal own in your state due to length or operation restrictions. If your state has those restrictions they sold alternate knives that would make it legal in your state. Seeking to stay in compliance with state laws and Paypal policies.

Shane continues on stating that PayPal had frozen their funds for 6 months and Venmo has granted them limited access to the money on his account. Even with his company’s access being restricted Scorpion 6 Knives will still be donating the $6k to those Texas charities. The charities who will be receiving the donations are Kids Meals Houston and the Texas State Aquarium.

On February 25th, Shane provided an video update on the PayPal situation. Informing his audience that he reached out to PayPal to see if they could get access to the funds for those charities. PayPal informed him that his access to his business account was denied. Blocking his access to those funds to those Texas charities.

Then, on February 26th, Scorpion 6 posted the response letter from PayPal’s executive escalation department in regards to his permanent suspension.

In summary the letter explains that they attempted to reach out to Shane through phone calls and was unable to reach him. The representative reiterated that Scorpion 6 Knives was in violation of their Acceptable Use Policy. Also, from time to time PayPal goes through and audits accounts to make sure they are meeting the guidelines set forth. In PayPal’s audit they didn’t meet the Acceptable Use Policy and were suspended. They apologized for inconvenience and losing them as a customer but, the suspension was necessary. (Below is the letter from PayPal).

PayPal Executive Escalation Email

Scorpion 6 Vs. Venmo

On the flip side of that coin Venmo only advised Scorpion 6 that their account was restricted initially until further review. Venmo allowed him access to small amount of those funds. It is never specified how much. Then, on March 2nd, Venmo Support sent Shane an email regarding the closing of the account. In that email Venmo claims that Scorpion 6 knives violated their User Agreement Policy with the selling of knives. They inform Shane that they can’t divulge the decision-making criteria behind the suspension and apologies for the inconvenience. (Below, is the letter from Venmo Support).

Venmo’s Support Letter

On February 27th, Shane sent a rebuttal letter to PayPal’s executive escalations. In that letter, Shane summarizes how other Big Box stores such as REI, Bass Pro Shops, and Dick Sporting Goods are selling the same types of knives as him without punishment from PayPal calling out the hypocrisy of PayPal’s enforcement of their policies. He challenges Pay Pal to keep the standard and enforce policy equal. After sending out this rebuttal letter, Shane has not heard back from PayPal. (Below, is Shane’s rebuttal letter)

Scorpion 6 Knives Rebuttal Letter

At the end of the day, Scorpion 6 Knives has little recourse and has taken legal action against PayPal and Venmo. In hopes of gaining access to the funds that were raised for those Texas Charities and other monies being held. Shane the owner of Scorpion 6 Knives has made it clear that those charities will get receive the money no matter what, a move I respect. Those charities receiving the money are Kids Meals Houston and the Texas State Aquarium.

If you want the whole rundown visit Scorpion 6 knives for the videos Shane posted in regards to the situation between PayPal and Venmo. Go, show your support for Scorpion 6 and all they are doing!

What do you think of the whole situation? Let us know in the comments below.

Thanks For Reading

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