PayPal Removes Policy That Threatened $2,500 Fine for ‘Misinformation,’ But Not Many Are Buying the Company’s Excuse

PayPal is backtracking on a policy that would fine users for what it called “misinformation.”

“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,” a PayPal representative said Saturday in a statement, according to National Review.

“Our teams are working to correct our policy pages. We’re sorry for the confusion this has caused,” the representative said.

The explanation for the retraction of the policy was greeted with skepticism.

PayPal had initially said that account holders PayPal found guilty of spreading whatever it called misinformation could have $2,500 deducted from their accounts.

“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,” the company said, according to Fox Business.

The policy was blasted.

“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,” former PayPal president David Marcus said Saturday on Twitter. “A private company now gets to decide to take your money if you say something they disagree with. Insanity.”


A prior policy banned “’hate,’ ‘intolerance,’ and discrimination”; the new one identified “protected groups” and “individuals or groups based on protected characteristics,” according to the National Review.

National Review noted that it was uncertain if the ban on certain language would go through.

The initial notice said violating the rules “may subject you to damages, including liquidated damages of $2,500.00 U.S. dollars per violation, which may be debited directly from your PayPal account.”

This article appeared originally on The Western Journal.