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PayPal says policy to fine customers for 'misinformation' was an 'error'

Published 10/10/2022, 11:58 AM
Updated 10/10/2022, 01:36 PM
© Reuters. A smartphone with the PayPal logo is placed on a laptop in this illustration taken on July 14, 2021. REUTERS/Dado Ruvic/Illustration
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(Reuters) -PayPal Holdings Inc said on Monday it will not fine users for misinformation and an earlier policy update that said customers could have to pay $2,500 in damages was sent in error.

Shares of the San Jose, California-based company were down nearly 6% after the update, which PayPal (NASDAQ:PYPL) said "included incorrect information", sparked intense backlash on social media over the weekend.

"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 spokesperson for the company said.

According to several media reports last week, PayPal had published a policy update prohibiting customers from using its services for activities identified by it as "sending, posting, or publication of any messages, content, or materials" promoting misinformation.

The new policy, which said customers could have to pay damages of $2,500 for each violation, was supposed to go into effect on Nov. 3, the reports said.

PayPal's former president David Marcus slammed the policy in a tweet on Saturday, saying the new policy "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" Marcus tweeted.

Elon Musk, the billionaire Tesla (NASDAQ:TSLA) Inc chief who co-founded PayPal, tweeted "Agreed", replying to Marcus's tweet.

PayPal's clarification was earlier reported by Bloomberg News.

Latest comments

An error but after withdrawing the policy, they've reinstated it.  Your truly: cancelled account since 1997.
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Good day guys i really want you all to know the easy way to make money without stress, i got paid $7000 by dealing with the best group ultimatetoolsofficial,com their service is legit and the steps are easy i really appreciate their great help. i'm looking forward in doing more business with them they also cleared my debts with their service.
Crazy how these virtue signaling, woke CEO's are destroying businesses left and left.
If you are still using PayPal, you are a fool. A fool and his money as soon parted.
PYPL made its intentions clear. They support the hard left and want to shut down free speech. Go woke, Go Broke.
So much trust lost in one move. Good job and good riddance, PayPal.
Paypal has deserved to bankrupt since many years ago, they treat clients and small business like **** freezing accounts and closing all communications unexpectedly like if they were the federal police of the world. If you dare to open your paypal account from another country different to the one that you have created your account, they will read silently your IP and freeze your account right away. Stripe following the same path.Good trip to bankruptcy paypal, we new startups will remind you who you declined/ froze accounts when we succeed.
Pay Pal has been banning users for political opinions for years. Finally they decided to go public with a discriminatory policy in the form of a fine and it is burning them. This wasn't an error, they have been trash for a while. Go to Gabpay.
Reversing their policy isn't going to get a single customer back.
I thought they were in the financial service business. They think they are the thought police. I'm out.
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