PayPal overturns policy to punish customers for misinformation

After fiercely condemning its plan, PayPal has overturned a policy that imposes a $2,500 fine on users who spread misinformation or post content deemed inappropriate by the payment platform.

The policy, known as the Acceptable Use Policy, states that users will face fines of $2,500 per violation if they send content that PayPal considers objectionable, promotes misinformation or is otherwise unsuitable for publication.

Paypal’s stock fell nearly six per cent after the policy was released, but the company now apologizes after fierce social media backlash and threats to close the account, claiming it was a mistake.

“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,” a company spokesman said.

While PayPal stated that the fines were never intended to be implemented, the policy outlining the fines was visible on the PayPal website in September and was removed in October after a massive backlash, including from former executives. The original plan, which has since been removed from the PayPal website, is available via the Internet Archive.

Before changing the plans, former PayPal president David Marcus slammed the policy on Twitter, saying it contradicted everything he believed in, a statement that Tesla CEO Elon Musk, co-founder of PayPal, agreed with.

The sources for this piece include an article in Reuters.

IT World Canada Staff
IT World Canada Staff
The online resource for Canadian Information Technology professionals.

Would you recommend this article?


Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.

Jim Love, Chief Content Officer, IT World Canada

Featured Download

ITW in your inbox

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.

More Best of The Web