PayPal backtracks on its decision of penalising users $2500 for misinformation after backlash
Paypal
After announcing a policy change under which users might have been fined $2500 for spreading misinformation, PayPal on Saturday backtracked on its decision, citing clerical error.
The fintech company said the policy update that went out to users was an 'error' and that the company apologised for creating any confusion.
“An AUP notice recently went out in error that included incorrect information. 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. We’re sorry for the confusion this has caused,” it said.
Earlier, in the updated acceptable use policy, which has since been deleted, PayPal asserted that the new policy will kick in from November 3. The company added that it was expanded its existing list of prohibited activities to include the “sending, posting, or publication of messages, content, or materials that meet certain criteria.”
"You may not use the PayPal service for activities that involve the sending, posting, or publication of any messages, content, or materials that, in PayPal’s sole discretion promote misinformation," read the notification.
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"Acceptable Use Policy violations of the PayPal User Agreement...may subject you to damages, including liquidated damages of $2,500.00 US," it read further.
After the news of the updated policy and fine went viral, David Marcus, the former president of PayPal took to Twitter and slammed the move.
“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,” tweeted Marcus.
Elon Musk, who co-founded what is now known as PayPal commented and agreed with David. Musk was a co-founder of X.com which merged with Confinity in 2000 to form the new entity which goes by the name of PayPal today.
Read more:After Ukraine-Russia, Elon Musk now has a suggestion on how to end China-Taiwan tensions
(With inputs from agencies)
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