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Tipsheet

Here's PayPal's Excuse After Massive Backlash Over 'Disinformation' Policy

AP Photo/Jeff Chiu, File

PayPal is trying to do damage control after widespread backlash over a published policy that would have allowed the company to fine users $2,500 for spreading “misinformation.”

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“An AUP notice recently went out in error that included incorrect information,” the company said in a statement. “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 wasn’t just conservatives that sounded the alarm about the Orwellian policy. Former PayPal president David Marcus blasted the move, with Tesla CEO Elon Musk agreeing. 

“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,” Marcus said. “A private company now gets to decide to take your money if you say something they disagree with. Insanity.”

According to the initial policy, PayPal said its list of “prohibited activities” would grow on Nov. 3 to include “the sending, posting, or publication of any messages, content, or materials” that “promote misinformation” or “present a risk to user safety or wellbeing.” Additionally, users could not promote “hate, violence, racial or other forms of intolerance that is discriminatory.” Violating the new policies could result in damages, including a fine of $2,500 that could be “debited directly from your PayPal account” for each offense. 

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Despite the company’s reversal, many longtime users closed their accounts, finding their excuse unbelievable. 

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