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PayPal threatens users with a $2,500 fee for disinformation, instantly retracts after uproar

Brian Murimi by Brian Murimi
October 10, 2022
in News
Reading Time: 2 mins read
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PayPal threatens users with a $2,500 fee for disinformation, instantly retracts after uproar
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A new policy in PayPal’s small print has sparked controversy over apparent plans to levy a $2,500 fine on any of its 429 million clients and merchants who convey what the corporate leadership views to be disinformation beginning Nov. 3.

PayPal hastily apologized over the weekend for what it called “confusion,” claiming it was all an error, but not before drawing fire from a slew of high-profile critics, including its own former president, David Marcus.

Marcus moved to Twitter to say the new Acceptable Use Policy (AUP) was “insanity,” forcing him to come forward and attack his prior employer, where he worked for three years starting in 2011 when eBay acquired a company he established and merged it with the payments service.

It’s hard for me to openly criticize a company I used to love and gave so much to. 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 they disagree with. Insanity. https://t.co/Gzf8faChUb

— David Marcus (@davidmarcus) October 8, 2022

With many on the right worrying that Big Tech is targeting them because of their political beliefs, the corporation rapidly reversed its position.

“PayPal is not fining people for misinformation and this language was never intended to be inserted in our policy,” a spokesperson later told media outlets over the weekend. “We’re sorry for the confusion this has caused.”

Others have warned that PayPal is not truly remorseful and is simply upset that they were caught first hand.

Following the update, shares of the San Jose, California-based company fell about 6%.

Tags: PayPal
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Brian Murimi

Brian Murimi

Brian is the founding geek at the Netick. A tech enthusiast skilled in journalism, media relations, multi-platform broadcasting, and social media. Write to him via bryanmurimi@gmail.com

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