PayPal backtracks on policy fining users for 'misinformation'

PayPal pulls policy that would’ve fined users $2,500 for ‘misinformation’ after its former president branded the move ‘insanity’: Firm claims update was sent out ‘in error’

• PayPal has reversed course on its policy to fine users $2,500 for spreading misinformation after receiving backlash from even its former president
• A spokesperson for the financial services company said the changes to its Acceptable Use Policy were sent out ‘in error’
• The changes would have prohibited ‘misinformation’ as defined by PayPal
• It also would have added protections for specific ‘protected groups’ and individuals or groups based on protected characteristics’
• Anyone found in violation of these rules could get $2,500 taken out of their account under the new terms set to go into effect on November 3
• It was criticized online by former president David Marcus and Elon Musk

PayPal has reversed course on its policy to fine users $2,500 for spreading misinformation after receiving backlash from even the company’s former president.

The financial services firm claimed to the National Review the changes to its Acceptable Use Policy were sent out ‘in error.’

‘An AUP notice recently went out in error that included incorrect information,’ the spokesperson said.

‘PayPal is not fining people for misinformation, and this language was never intended to be inserted in our policy.

‘Our teams are working to correct our policy pages,’ they noted, adding: ‘We’re sorry for the confusion this has caused.’

The apparent reversal comes just one day after its former president David Marcus slammed the online payment firm over the implication that it could seize customers’ money for finding their views objectionable.

‘It’s hard for me to openly criticize a company I used to love and gave so much to,’ he tweeted on Saturday. ‘But @PayPal’s new AUP goes against everything I believe in.

‘A private company now gets to decide to take your money if you say something thy disagree with. Insanity.’

Tesla CEO Elon Musk soon replied that he ‘agreed,’ in a tweet that garnered more than 27,400 likes.

PayPal has back tracked on its policy to fine users $2,500 for spreading ‘misinformation,’ saying the the changes to its Acceptable Use Policy were sent out ‘in error’

 The move was criticized by even the company’s former president David Marcus, who said it goes against everything he believes in, and calling it insanity

 Tesla CEO Elon Musk soon replied that he ‘agreed,’ in a tweet that garnered more than 27,400 likes.

The new policy was originally scheduled to be added to the restricting activity section of the new PayPal User Agreement on November 3, Daily Wire originally reported.

Changes included the prohibition on the ‘sending, posting, or publication of any messages, content, or materials’ that ‘promote misinformation.’

What constitutes ‘misinformation,’ the AUP said, would be the ‘sole discretion’ of the company.

And while the original policy already forbade ‘hate, intolerance and discrimination’ the new policy would have added protections for specific ‘protected groups’ and individuals or groups based on protected characteristics’ like race, religion, gender or gender identity and sexual orientation.

It remains unclear whether PayPal will remove these protections, or whether it is only scrubbing the ‘misinformation’ clause.

But according to the AUP sent out earlier this week, breaking any of the new rules ‘may subject you to damages, including liquidated damages of $2,500.00 US dollars per violation, which may be debited directly from your PayPal account.’

The company noted that as part of its user agreement, account holders accept and must attest that the penalty is ‘presently a reasonable minimum estimate of PayPal’s actual damages’ due to the expenses the firm incurs by accounting for violations, as well as the damage to its reputation.

The company has become known to censor conservative voices under CEO Dan Schulman, pictured here in September

PayPal was originally founded in December 1998 by Max Levchin, right, and Peter Thiel, left, who has become a major donor to Republican candidates and ‘conservative’ business ventures

PayPal was originally founded in December 1998 by Max Levchin and Peter Thiel, who has become a major donor to Republican candidates and ‘conservative’ business ventures.

But Ebay acquired the company in 2002, and under CEO Dan Schulman, the financial services company has become known to censor or deplatform organizations or individuals promoting conservative ideals.

In fact, just days before PayPal accidentally announced its new policy, it canceled three accounts linked to Toby Young, a commentator who runs the nonprofit Free Speech Union, which defends clients like actor Russell Brand, who recently moved his show from YouTube to Rumble in reaction to censorship.

Roughly one-third of Free Speech Union members rely on PayPal to process their membership dues, the Daily Wire reports, and the company gave no explanation to Young for the suspension beyond mentioning a breach of its Acceptable Use Policy.

It later restored the accounts after receiving criticism from lawmakers, and apologized to Young for ‘any inconvenience caused.’

The company also recently banned Gays Against Groomers, a group comprising LGBT individuals that fight against the sexualization and transitioning of minors.

And just minutes after the company made the decision, its subsidiary Venmo reportedly barred the organization from accessing its app as well.

Evolutionary biologist Colin Wright and journalist Ian Miles Cheong, who write about the dangers of transgenderism in minors, have also been removed from the platform. 

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