Author: George Clark
Payment processing platform, PayPal, is receiving backlash from millions of users and non-users for allegedly saying it would begin fining all misinforming users $2,500 in damages for sharing false information about the company and its practices.
Now, the company is asking customers to disregard this previous statement and to regard it as nothing more than an “internal error.”
PayPal Misinformation Policy
On Monday, October 10, 2022, PayPal reversed a statement it will be finning users for misinformation. PayPal claimed the policy which stated that misinformants would pay $2,500 in damages, was nothing but a company error.
The document, dated Nov 3, 2022, is a lengthy list of PayPal’s prohibited activities, including sharing misinformation.
As soon as the document began circulating on the web, #byebyepaypal# and #boycottpaypal# started making rounds on Twitter.
Not long after that, the stock value of the Silicon Valley-based company fell by about 6%.
“PayPal does not intend to fine customers for sharing wrong information, and this declaration is not a part of our policies. We sincerely apologize for any inconvenience this has caused,” an official PayPal spokesperson said.
Millions of social media users are vowing to delete their PayPal accounts because of the policy update released last month. Upon its release, the policy sparked outrage among users claiming it to be an insult to free speech.
According to news outlets last week, PayPal released an update to its policy forbidding customers from participating in activities such as “posting, sending and publishing any content that is wrong about the company or its services.
This policy, which mandated a $2,500 charge from offenders was to take effect on Nov.3, 2022.
PayPal’s Acceptable Use Policy
PayPal’s AUP (Acceptable Use Policy) is found on the legal section of the company’s website and designates the outlines and regulations for using any PayPal services. Included in its prohibited list is: making illegal transactions such as buying or selling firearms, stolen items, and controlled drugs and substances.
The document also reads that PayPal has the right to “hold you for damages of up to $2,500 per each violation, which we can debit from (any of) your PayPal account(s) as stated in our User Agreement manual.”
That means the fintech company can sue users for violating its policies and charge $2,500 in damages per violation.
David Marcus And Elon Musk
In response to PayPal’s misinformation dilemma, former PayPal president David Marcus, via Twitter, said: I’m finding it hard to publicly criticize the actions of the company I once loved and gave my all to,” he said.
He further stated: PayPal’s latest AUP update goes against all my core values. A company trampling free speech and choosing to seize your funds for saying something that goes against their comfort. Pure Insanity.
Elon Musk, Tesla and SpaceX founder and one of PayPal’s top founders and investors, responded by tweeting “Agreed.”
Final Word
One of the top digital payment processors in the world, PayPal, announced a policy that says it will fine users $2,500 if they share false information about the company or its services. As expected, so many users says it offensive and started a campaign on Twitter for people to stop using PayPal. However, the company has reversed this statement saying it was an internal error.
