PayPal on Saturday reversed its decision after announcing a policy change that could have resulted in customers being fined $2500 for disseminating false information, claiming a clerical error. The fintech business called the policy update that was sent to users a ‘mistake’ and apologised for any confusion it may have caused.
‘Recently, a misinformation-filled AUP notice was distributed. PayPal does not impose fines for providing false information, and this statement was never meant to be included in our policy. Our staff are working to update our policy pages. We apologise for the confusion this has created’.
Earlier, PayPal stated that the new policy would go into effect on November 3 under the amended acceptable usage policy, which has since been removed. The business further stated that it had enlarged its current list of forbidden actions to now include ‘sending, uploading, or publication of communications, content, or items that match specified criteria’.
According to the warning, ‘You may not use the PayPal service for any activity including the sending, uploading, or publication of any messages, content, or materials that, in PayPal’s sole judgement, promote misinformation’. It continued, ‘Acceptable Use Policy violations of the PayPal User Agreement may result in consequences, including liquidated damages of $2,500.00 US’.
Former PayPal president David Marcus criticised the action on Twitter as word of the revised policy and penalties spread widely. ‘It’s difficult for me to openly criticise a business that I once adored and gave so much to. However, the new AUP from @PayPal goes against everything I stand for. If you say something that a private firm disagrees with, they now get to decide whether to take your money. Crazy,’ Marcus wrote in a tweet.
Elon Musk, a co-founder of the company that is now known as PayPal, made a remark and agreed with David. Musk was a co-founder of X.com, which merged with Confinity in 2000 to create the new company known as PayPal.
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