PayPal has backtracked from its plans to fine users $2,500 for posting misinformation and hate speech, with the company claiming it never intended to do so..“PayPal is not fining people for misinformation and this language was never intended to be inserted in our policy,” a spokesperson for the company told media outlets over the weekend. “We’re sorry for the confusion this has caused.” .On Saturday, it was reported that starting November 3, those who broke PayPal's rules around misinformation and hate speech could be subject to damages, "including liquidated damages of $2,500.00 US dollars per violation, which may be debited directly from your PayPal account.".To use PayPal, one would be required to accept their user agreement specifying that the $2,500.00 fines are “presently a reasonable minimum estimate of PayPal’s actual damages” due to the expense the firm incurs by accounting for both the violations and damage to its reputation..READ MORE: New PayPal policy allows company to fine users for misinformation.There was sharp backlash to the updated policy over the weekend, with thousands of online users claiming they would be cancelling their accounts. Dan Held, the former head of growth marketing for crypto exchange Kraken, argued users should delete their accounts. “PayPal freezing funds for thought crimes is despicable," he said..Many Twitter users refused to believe PayPal's assertion that they never intended to implement the policy, while several larger accounts suggested the move was a precursor to fines being levied against people through Central Bank Digital Currencies..Even David Marcus, PayPal's former president, condemned the company for the policy, claiming it goes against "everything I believe in." Tesla CEO Elon Musk later responded to Marcus' tweet, "I agree.".PayPal's stock, which have underperformed compared to other payment services in 2022, slid even further on Monday. The company's shares fell from $90 on Friday to $85 on Monday morning. .Continue reading
