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PayPal Attempts to Fine Customers $2,500 for Spreading ‘Misinformation’

And didn't allow users to delete their account when they tried to.

Yesterday Paypal rewrote their user 'agreement' adding a new clause stating they would fine customers $2500 who spread 'misinformation' on the internet, prompting millions of people to try deleting their account, only to find they were prevented from doing so.

PayPal then backtracked on the policy claiming the update had gone 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,” a spokesperson told National Review in a written statement.

Thousands of Paypal users attempted to delete their account before the supposed 'error' was corrected only to find that they couldn't do so. When they clicked on the link to 'delete account' they entered a digital loop preventing them from completing the task. This too was said claimed to be a technical error.

“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,” the cryptocurrency entrepreneur said Saturday. “A private company now gets to decide to take your money if you say something they disagree with. Insanity.” Former paypal financier Elon Musk replied, “Agreed,” in a comment that got thousands of likes. The policy update had appeared to authorise the company to pull a significant sum of money from the accounts of users who spread “misinformation,” among other newly listed offenses. The new conditions were scheduled to be added to the restricted activity section of the PayPal User agreement effective November 3, the Daily Wire first reported. Changes included prohibitions 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.

Breaking the rule against misinformation and hate speech “may subject you to damages, including liquidated damages of $2,500.00 U.S. dollars per violation, which may be debited directly from your PayPal account,” the company had originally warned. In a user agreement, account holders accept and attest that the penalty is “presently a reasonable minimum estimate of PayPal’s actual damages” due to the expense the firm incurs by accounting for the violations as well as damage to its reputation.

Once the policy went live a massive backlash ensued. People called it "outrageous" and #ByeByePaypal trended on Twitter

Paypal then backtracked, claiming that it was "an error" and that the agreement clause was uploaded by mistake. But it was not an error, as Reignite Freedom founder said, this was a test, to see if they could get away with it:

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