A new user agreement with PayPal that threatens to fine users up to $2,500 if they use the service to “promote misinformation” was sent “in error,” a PayPal spokesperson told FOX Business.
PayPal’s updated Acceptable Use Policy, effective Nov. 3, includes an expansion of “prohibited activities” to include “discontinuing, posting, or publishing messages, content, or materials that meet certain criteria.”
According to PayPal’s updated user agreement, the company states that any violation may result in a “penalty of $2,500.00” per violation, which will be deducted directly from their account.
One of the listed violations, according to the settlement, is that users “may not” use PayPal to promote misinformation.
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“You may not use the PayPal Service for activities that … include sending, posting, or posting any messages, content or materials that, in PayPal’s sole discretion, … promote misinformation.”
However, when contacted by FOX Business, a PayPal spokesperson said the notice about the acceptable use policy was issued in error and that the company will not fine users for misinformation.
“An AUP notice recently went out in error that included incorrect information,” the spokesperson said. “PayPal does not fine people for misinformation, and this language was never intended to be included in our policy.”
The spokesperson added that the company is in the process of updating its policy changes and apologized for any confusion.
“Our teams are working to fix our policy pages. We apologize for the confusion this has caused,” the spokesperson added.
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Former PayPal president David Marcus commented on the policy, saying in a tweet that the updated Acceptable Use Policy “goes against everything I believe in.”
“It’s hard for me to openly criticize a company that I loved and gave so much to. But @PayPal’s new AUP goes against everything I believe. Now a private company can decide to take your money if you say something they don’t agree with,” Marcus said. “Madness”.
Elon Musk, CEO of Tesla and co-founder of PayPal, responded to Marcus by tweeting, “I agree.”
The new policy, which was described as a “mistake,” comes after Gays Against Groomers said on Sept. 20 that it had been banned from both PayPal and Venmo.
Venmo is owned by PayPal.
Gays Against Groomers founder Jaimee Mitchell said on “Tucker Carlson Tonight” that the company did not inform them of what it did to violate its user agreement.
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“We’ve never received a violation before. They said we violated their user agreement, but we’re not sure what in the agreement we violated,” Mitchell said. “There wasn’t really a detailed announcement about it. Just the notice that we’re banned.”
FOX Business’ Max Thornberry contributed to this report.