PayPal Stock Plummets after Controversy over ‘Misinformation’ Fine

PayPal stock tumbled Monday after reports circulated that the company’s updated acceptable use policy would fine users $2,500 for spreading “misinformation.”

Shares of the online payments system operator were trading 5.74 percent lower at $84.99 as of noon on Monday. On Sunday, it was reported that PayPal changed the language of the restricted activity section on its AUP to include a clause threatening to impose a $2,500 penalty “debited directly from your PayPal account” for an expanded list of prohibited activities.

The new conditions were supposed to launch effective November 3, the Daily Wire first reported. Changes included a ban on “the sending, posting, or publication of any messages, content, or materials” that “promote misinformation.” While the prior policy already forbade “hate,” “intolerance,” and discrimination, the new one would have explicitly applied to specific “protected groups” and “individuals or groups based on protected characteristics.” Identities under this umbrella included race, religion, gender or gender identity, and sexual orientation.

Hours later, a PayPal spokesperson issued a new statement, obtained by National Review, backtracking on the published policy and claiming it went out “in error.”

“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. Our teams are working to correct our policy pages. We’re sorry for the confusion this has caused,” said Caitlin Girouard, PayPal’s director of corporate affairs.

The reversal came after the policy changes generated backlash on Twitter, from customers as well as tech entrepreneurs. Former PayPal president and cryptocurrency mogul David Marcus even slammed the company over the implication that it could withdraw money from customers for finding their views objectionable. Elon Musk, who is still negotiating to acquire Twitter, echoed Marcus’s disgust in a tweet. Many PayPal users reportedly canceled their accounts after the news of the updated policy broke, according to Twitter comments.

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

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