PayPal says ‘misinformation’ fine policy was published in error

A recent policy update by PayPal that would fine users $2,500 for misinformation has been withdrawn after the payments giant said it was published in error. Soon after the new policy wording was reported, PayPal faced an intense backlash on social media with many high-profile leaders in technology openly criticising the update.

A PayPal spokesperson said: “PayPal is not fining people for misinformation and this language was never intended to be inserted in our policy. We’re sorry for the confusion this has caused.”

Shares in PayPal fell by almost 6% in the aftermath of the policy and backlash. The new policy update reportedly said that any users that engage in “sending, posting, or publication of any messages, content, or materials” promoting misinformation will be stopped from using PayPal services. This update was expected to enter force on November 3rd.

On Twitter, after the announcement of the policy, the term “BoycottPayPal” was trending and Google searches for “how to cancel PayPal” and “delete PayPal account” massively increased in popularity, indicating that a large number of customers were not happy with the policy.

Some customers also began to remove their money from their PayPal accounts and remove their personal data, fearing that this policy could be used against them, resulting in thousands of dollars in fines.

Former PayPal president, David Marcus, was one of the many social media users that condemned the policy, saying: “PayPal’s new AUP (Acceptable Use Policy) goes against everything I believe in. A private company now gets to decide to take your money if you say something they disagree with.”

Tesla CEO, Elon Musk, who co-founded PayPal, supported the statement by Marcus and replied to his tweet with “Agreed.”