After facing criticism from even the former president of the company, PayPal has changed its mind on its policy of fining users $2,500 for disseminating false information.
According to a spokesman for the financial services firm, the revisions to its Acceptable Use Policy were sent out ‘in error.’
‘An AUP notice was recently sent out in error that contained inaccurate information,’ according to the spokesman. ‘PayPal does not fine users for spreading false information, and this term was never intended to be included in our policy.’
‘Our teams are trying to amend our policy pages,’ they said, adding, ‘We apologize for the confusion.’
The apparent U-turn comes only one day after the company’s former president, David Marcus, criticized the online payment provider for implying that it may seize users’ funds if it found their ideas disagreeable.
On Saturday, he wrote, ‘It’s difficult for me to openly criticize a firm I used to love and give so much to.’ ‘However, @PayPal’s new AUP contradicts everything I believe in.
‘A private corporation can now chose whether or not to take your money if you say anything they disagree with. Insanity.’
Tesla CEO Elon Musk quickly responded, ‘agreeing,’ in a tweet that received over 27,400 likes.
The new policy was supposed to be included to the restricted activities portion of the revised PayPal User Agreement on November 3, according to Daily Wire.
The’sending, uploading, or publication of any messages, content, or materials that propagate misinformation’ was prohibited.
The AUP stated that the company’s’sole discretion’ would be used to determine what constitutes’misinformation.’
While the original policy already prohibited ‘hate, intolerance, and discrimination,’ the new policy would have added safeguards for specific ‘protected groups,’ as well as individuals or groups based on protected characteristics such as race, religion, gender or gender identity, and sexual orientation.
It is unclear whether PayPal will remove these safeguards or simply remove the’misinformation’ clause.
However, breaching any of the new rules’may expose you to fines, including liquidated damages of $2,500.00 US dollars per violation, which may be deducted immediately from your PayPal account,’ according to the AUP sent out earlier this week.
According to the company, as part of its user agreement, account holders understand and must affirm that the penalty is ‘currently a reasonable minimum estimate of PayPal’s actual damages’ due to the expenses incurred by accounting for violations, as well as the damage to the firm’s reputation.
PayPal was launched in December 1998 by Max Levchin and Peter Thiel, a major donor to Republican candidates and ‘conservative’ commercial initiatives.
However, Ebay bought the company in 2002, and under CEO Dan Schulman, the financial services firm has become renowned for censoring or deplatforming organizations or individuals espousing conservative ideals.
In reality, PayPal terminated three accounts tied to Toby Young, a pundit who leads the charity Free Speech Union, which represents clients like actor Russell Brand, who recently switched his show from YouTube to Rumble in response to censorship.
According to the Daily Wire, around one-third of Free Speech Union members rely on PayPal to process their membership dues, and the business provided no reason to Young for the suspension other than a violation of its Acceptable Use Policy.
After receiving criticism from MPs, Amazon later reinstated the accounts and apologized to Young for “any trouble caused.”
Gays Against Groomers, a group comprised of LGBT individuals who fight against the sexualization and transitioning of youngsters, was also recently banned by the company.
And, reportedly, just minutes after the business made the decision, its subsidiary Venmo prohibited the organization from using its app as well.
The platform has also been deleted from evolutionary biologist Colin Wright and writer Ian Miles Cheong, who both write on the risks of transgenderism in young people.