> Any service could say that you’ll have to pay $2,500 for violating the TOS if they want to. Instagram could say it, but nobody would give the money to them wi

> Any service could say that you’ll have to pay $2,500 for violating the TOS if they want to. Instagram could say it, but nobody would give the money to them willingly. Stubhub has a similar policy where you automatically get charged the entire sale price as a penalty (which goes entirely to Stubhub, separate and in addition to them refunding the buyer) for cancelling an order. Even if you do it right after sale. Most platforms like eBay or Amazon will give you some kind of strike for that, but I'd never heard of anyone attempting to fine you money beyond refunding the buyer. I cancelled the credit card so they can't charge me, but apparently they send people to collections for this. IANAL, but I think I might be able to argue that it is unreasonable liquidated damages, especially since their help site refers to it as a "penalty." PayPal is clearly trying to use the right language here, calling it an estimate of hard to calculate damages. I think these liquidated damages in consumer contracts are really a terrible idea and getting more and more common with online companies. Apparently Zipcar will charge a $50 late fee if you are even one minute late, whereas other rental firms charge something like $12 a day and wouldn't even think of counting minutes.