After receiving criticism over the new user agreement strategy of PayPal, now PayPal says it never intended to fine users for ‘misinformation’ as per the reports.
After receiving criticism for publishing a new user agreement outlining such a strategy, PayPal Holdings stated that it has no intention of imposing fines on customers for spreading false information.
In an Acceptable Use Policy that will go into effect on 3rd November 2022, the company issued policy updates prohibiting users from using the PayPal service for activities that the company identifies as “the sending, posting, or publication of any messages, content, or materials” promoting misinformation. As a result, the issue gained traction over the weekend. A fine of $2,500 could be imposed for each violation.”
In a statement provided to Bloomberg News, a PayPal spokesperson stated that the notice contained “incorrect information.”This language was never included in our policy, and PayPal does not penalize individuals for spreading false information.
The company’s shares fell as much as 5.3% to $85.43, the most significant intraday drop since July 26. They fell by 4.7% to $85.90, in New York City this morning.
The initial notice sparked outrage among the company’s former leaders, including PayPal president David Marcus, who on Twitter referred to the move as “insanity.”In a tweet, Elon Musk, CEO of Tesla and co-founder of the platform, stated that he agreed with Marcus.
Right-wing politicians have long criticized major tech companies like Twitter and Meta Platforms in the United States for censoring conservative voices. Musk, who proposes to acquire Twitter for $44 billion, who has criticized the platform’s treatment of celebrities like former President Donald J. Trump and rapper Kanye West, has stated that he will prioritize free speech on the platform.
Even though some progressives support Republican calls for more regulation of big tech, current proposals requiring platforms to protect user privacy and security have largely failed as Congress pursues other priorities.
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Conservative politicians and social media personalities also took advantage of the PayPal controversy to urge users to close their PayPal accounts. Before the firm’s statement, a South Carolina Republican senator named Tim Scott stated that his office would investigate the legitimacy of the policy and take any necessary action to stop such “corporate activism.”
