PayPal Tries To Backtrack After $2,500 Fine For ‘Misinformation’ Exposed – Claims It Was An ‘Error’


If there’s one thing we’ve learned when using online apps (particularly financial institutions), it is to read the monstrously-long terms of service.

Outrage quickly grew after it was discovered PayPal had included plans in their Acceptable Use Policy (AUP) to fine merchants $2,500 if they deemed those merchants had expressed “misinformation.”

PayPal backtracked and apologized over the weekend, claiming it was simply a matter of “confusion.” However, many people were expressing their outrage, including David Marcus, the service’s own former president.

Marcus said on Twitter, “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.”

Elon Musk responded to Marcus’ tweet with “Agreed.”

Venture capitalist David Sacks also expressed his outrage, adding his voice to the growing number of people calling for people to delete PayPal.

Scott Adams, the creator of the Dilbert comic tweeted:

A spokesperson for PayPal tried to say the company did not mean to include the language in their AUP saying, “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.”

Conservative actor Kevin Sorbo rebuked PayPal’s statement saying: