PayPal Receives Major Backlash for Their $2,500 Misinformation Fine, Apologizes for “Confusion”

PayPal’s alleged plans to start charging consumers $2,500 any time they spread what the company deems as misinformation has triggered a major backlash. These plans were set to be in effect starting Nov. 3 but have since been revoked.

Recent leaked documents revealed that PayPal was planning to impose financial penalties on users who violate their new policy. However, PayPal quickly tried to backtrack once the news broke of their new policy. A spokesperson for the company told media outlets, “PayPal is not fining people for misinformation and this language was never intended to be inserted in our policy. We’re sorry for the confusion this has caused.” 

This did not stop many high-profile individuals from expressing their displeasure with PayPal’s policy including some who once were involved with the company. 

Elon Musk, one of the entrepreneurs behind the founding of the company, showed his disapproval by replying to a tweet from former PayPal president, David Marcus. Marcus explained on Oct. 8, “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. A private company now gets to decide to take your money if you say something they disagree with. Insanity.” 

Musk then replied, “Agreed.”

According to Fortune, “The intense blowback will not likely be helpful for PayPal shares, which have thus far been a poor investment in 2022.”