PayPal walks back update to user policy that threatened a $2,500 penalty for spreading ‘misinformation’

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PayPal initially announced that users would be fined for sending misinformation.

The left-wing company has a reputation for taking users off its platform because of political views.

After Daily Wire broke the story, the company released this announcement from PayPal.

“An [Accepted Use Policy] 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 into our policy. We’re sorry for the confusion this has caused.”

Users are concerned, and some are concerned enough to remove their money from their accounts.

The original document released said PayPal would increase its “existing list of prohibited activities.”

The charges for removal could be “the sending, posting, or publication of any messages, content, or materials” that “promote misinformation” or “present a risk to user safety or wellbeing.”

In addition, removal could be because of “the promotion of hate, violence, racial or other forms of intolerance that are discriminatory.

Aaron Terr, a senior program officer at the Foundation for Individual Rights and Expression, said, “Under existing law, PayPal has the ability as a private company to implement this type of viewpoint-discriminatory policy. Whatever motivation PayPal has for establishing these vague new categories of prohibited expression, they will almost certainly have a severe chilling effect on users’ speech. As is often the case with ill-defined and viewpoint-discriminatory speech codes, those with unpopular or minority viewpoints will likely bear the brunt of these restrictions.”

More on this story via Daily Wire:

The report sparked outrage online, with many people tweeting pledges to dump the online payment facilitator. Particularly chilling was the fact that the policy said determinations of what could be deemed “misinformation,” or a threat to the “wellbeing” of other users was to be at the “sole discretion” of PayPal. The now-aborted policy said users could be liable for “damages” — including the removal of $2,500 “debited directly from your PayPal account” per offense.

The announcement and reversal comes days after PayPal canceled three accounts linked to Toby Young, a commentator who runs a nonprofit called Free Speech Union. The organization has defended clients such as actor and comedian Russell Brand, who recently moved his show from YouTube to Rumble in reaction to censorship from the former platform.

Platforms such as Amazon, Twitter, and Facebook have censored conservatives over their positions on controversial social issues, including transgenderism, vaccination mandates, and homosexuality. GoFundMe seized millions in funds raised for trucker protests in Canada earlier this year, while Google recently began suppressing search results for crisis pregnancy centers.

PayPal has also sanctioned Gays Against Groomers, a group that opposes the sexualization of children, as well as evolutionary biologist Colin Wright and journalist Ian Miles Cheong. The company featured a rainbow-colored banner on its social media platforms during the month of June affirming that the platform is “open for all” — and PayPal U.K. still sports the banner.

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“Whatever PayPal’s intentions may be, censorship and chilling free speech is precisely the effect of these kinds of vaguely worded policies,” Tedesco added. “We’ve seen social media companies use similar policies to stifle free speech on their platforms. We can expect a similar outcome with PayPal.”