PayPal accused of flip-flopping on its $2,500 fines for 'misinformation'


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It seems politicians aren’t the only ones to flip-flop on issues.

A new report reveals that now PayPal again is threatening its loyal customers with “fines” of $2,500 for their “misinformation,” only weeks after announcing the policy, then recanting because of the outrage from the public.

A report from The Gateway Pundit reports the latest stance on the financial transactions company for its customers – apparently – is that the fines are again a threat.

The report said under the company’s Acceptable Use Policy there now is the threat: “Violation of this Acceptable Use Policy constitutes a violation of the PayPal User Agreement and 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(s) as outlined in the User Agreement.”

The report said the company considers to be offenses things like spreading false information, engaging in discrimination against the LGBTQ community and so forth.

According to the report, PayPal had said, “You may not use the PayPal service for activities that involve the sending, posting, or publication of any messages, content, or materials that, in PayPal’s sole discretion, (a) are harmful, obscene, harassing, or objectionable, (b) depict or appear to depict nudity, sexual or other intimate activities, (c) depict or promote illegal drug use, (d) depict or promote violence,  criminal activity, cruelty, or self-harm (e) depict, promote, or incite hatred or discrimination of protected groups or of individuals or groups based on protected characteristics (e.g. race, religion, gender or gender identity, sexual orientation, etc.) (f) present a risk to user safety or wellbeing, (g) are fraudulent, promote misinformation, or are unlawful, (h) infringe the privacy, intellectual property rights, or other proprietary rights of any party, or (i) are otherwise unfit for publication.”

A significant – and negative – response from the public followed, prompting the company to offer a $15 benefit for those closing their accounts to remain.

And it said the policy had been released in error and was not, in fact, in force. warned of the resurrection of the threat.

The company states: “You are independently responsible for complying with all applicable laws in all of your actions related to your use of PayPal’s services, regardless of the purpose of the use. In addition, you must adhere to the terms of this Acceptable Use Policy. Violation of this Acceptable Use Policy constitutes a violation of the PayPal User Agreement and 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(s) as outlined in the User Agreement (see ‘Restricted Activities and Holds’ section of the PayPal User Agreement). ”

Under Restricted Activities and Holds it states, “In connection with your use of our websites, your PayPal account, the PayPal services, or in the course of your interactions with PayPal, other PayPal customers, or third parties, you must not provide false, inaccurate or misleading information.”

Former PayPal president David Marcus has excoriated the company for its threats.

WND subsequently reported that Congress was wanting answers from the company.

In a letter to PayPal’s president, Dan Schulman, GOP members of Congress referenced PayPal’s threat to fine those involved in “sending, posting or publication of any message, content, or materials” PayPal doesn’t like.

That would include “misinformation.”

The members said at the time it was concerning “that a user agreement that contemplates the restriction of free speech was uploaded and disseminated to PayPal users…”

They want a briefing on how the text originated, what is the company’s method of approving policy changes, who does those, what are the company’s controls, who was given notice about the change, how are cases brought and handled, and is there an appeals process and more.

A report at Just the News noted the company’s stock value had “tumbled when news of its censorship plan was uncovered.”

House Energy and Commerce Committee Republican Leader Rep. Cathy McMorris Rodgers, R-Wash., Rep. Patrick McHenry, R-N.C., of the House Financial Services Committee, and House Oversight members Rep. Morgan Griffith, R-Va., and Tom Emmer, R-Minn., are leading the effort to review PayPal’s “anti-free speech policy,” the report said.

It added, “Critics also point out that while PayPal rescinded its misinformation policy, the company still maintains a $2,500 ‘liquidation’ policy against accounts accused of ‘discrimination’ and ‘hatred’ as well as ‘intolerance’ as the company chooses to define it.

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