Online payment network PayPal has rejected a controversial policy that could have fined users $2,500 for posting “misleading information” and the payment platform claimed the policy update was posted “in error.”
The now-withdrawn deceptive provision of PayPal’s Acceptable Use Policy (AUP) was scheduled to go into effect on November 3, which would expand the list of prohibited activities to include “sending, posting, or posting any message, content or material” that publishes information misleading”.
But the policy shot says otherwise. PayPal acknowledges after backlash on social media. Read the full story below! https://t.co/5KX1d6O3RP pic.twitter.com/aWEdw86Xvd
– thetechstartups (@techstartups) October 9, 2022
PayPal has since told several sources reporting the clause that the updated Acceptable Use Policy was issued in error and contained incorrect information, explaining that it would not penalize users for posting incorrect information:
“Paypal does not penalize people for misinformation, and this language was never intended to be included in our policies. […] Our teams are working on fixing our policy pages. We apologize for the confusion.”
The controversy spread like wildfire on Twitter among crypto and non-crypto watchers, with some continuing to comment on the matter even after the pullback.
David Marcus, Lightspark CEO and former PayPal president, called it “crazy” that “a private company has now decided to take your money if you say something they don’t agree with.”
Elon Musk, Tesla CEO and former co-founder of PayPal, responded to Marcus’ tweet with “I agree.”
Syd Powell, co-founder of Maple Finance, said the current case is a textbook example of why it’s important to keep your own money.
PayPal is a good example of why you need to store your own money. Previously, your economy was separate from freedom of speech. Now saving your own money is the only way to protect this right for yourself.
— Mr. Powell () (@syrupsid) October 9, 2022
Mikael van de Poppe, founder and CEO of crypto-eight consulting and education platform, was brief and succinct, describing it as “the end of PayPal.”
The end of PayPal.
Buy Bitcoin #.
— Michael van de Poppe (@CryptoMichNL) October 9, 2022
Related: Business Owners Should Ditch PayPal and Move to Blockchain
But not everyone felt that the now-defunct PayPal provision was unfair to users.
In any case, companies have the right to choose who can use their services without giving reasons: Meltem Demirors, head of strategy at digital asset investment firm CoinShares, said:
2/ Whether or not expressly stated in their terms of service, all types of companies from github to PayPal (insert service provider here) participate in the oversight and have the right to refuse service and access to anyone they choose, at any time, without explaining why
– Meltem Demirors (@Melt_Dem) October 9, 2022
“If you think cryptocurrency is immune, you are either willfully naive or ignorant,” she said, adding:
“Currently, 31% of post-merger Ethereum blocks are OFAC compliant, which means that they censor transactions associated with specific contracts and addresses on the government-sponsored list.”
While the introduction of the bot would be a first for PayPal, the payments giant is no stranger to removing users it doesn’t agree with politically by severing ties with Epik, the domain registrar that has provided services to Proud Boys and others around the world. – Haq groups, October 2020
Like the stock market as a whole, PayPal shares are down 64.65% in the past 12 months, according to Yahoo Finance.
The Nasdaq will reopen on October 10 at 13:30 UTC, so it remains to be seen if the item and subsequent recall will affect PayPal’s stock price.
