PayPal Holdings said on October 10 that it will not fine users for misinformation and an earlier policy update that mentioned users could be compelled to pay $2,500 in damages was sent in error.
Shares of the San Jose, California-based firm were down almost 6% after the update. PayPal insisted that the update “included incorrect information” after it sparked severe backlash on social media over the weekend.
A spokesperson for the firm stated:
“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.”
Based on several media reports in the past week, PayPal had published a policy update that prohibited clients from using its services for activities identified by it as “sending, posting, or publication of any messages, content, or materials” promoting any misinformation.
The new policy, which stated that customers could have to pay damages of $2,500 for every violation, was expected to go into effect on November 3, the reports highlighted.
Buy Bitcoin NowPayPal’s former president David Marcus slammed the new policy in a tweet on October 8, stating that the new policy “goes against everything I believe in”. He tweeted:
“A private company now gets to decide to take your money if you say something they disagree with. Insanity.”
Elon Musk, the Tesla CEO billionaire who co-founded PayPal, tweeted “Agreed”, while replying to Marcus’s tweet. PayPal’s clarification was first reported by Bloomberg News.
