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PayPal Says It Won't Fine Customers $2,500 for 'Misinformation' (nationalreview.com) 151

An anonymous reader shares this report from the National Review: PayPal has backtracked on a published policy that would have fined users $2,500 for spreading "misinformation," claiming the update had gone out "in error."

"An 'Acceptable 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 in our policy. Our teams are working to correct our policy pages. We're sorry for the confusion this has caused," a spokesperson told National Review in a written statement....

The policy update had appeared to authorize the company to pull a significant sum of money from the accounts of users who spread "misinformation," among other newly listed offenses.... Changes included prohibitions on "the sending, posting, or publication of any messages, content, or materials" that "promote misinformation." While the prior policy already forbade "hate," "intolerance," and discrimination, the new one would have explicitly applied to specific "protected groups" and "individuals or groups based on protected characteristics...."

The firm's current rulebook doesn't list these terms. It's unclear whether PayPal will also pull back these specific prohibitions on "discriminatory" language, or if it is only scrubbing the "misinformation" clause.

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PayPal Says It Won't Fine Customers $2,500 for 'Misinformation'

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  • by magzteel ( 5013587 ) on Saturday October 08, 2022 @05:41PM (#62949895)

    Those terms of service would have been run past legal and management multiple times, there's no way it was just "incorrect information".

    • by ArgoNut ( 4827189 ) on Saturday October 08, 2022 @05:54PM (#62949911)

      Exactly correct. These legal agreements don't get updated by mistake.

      I don't know if they thought nobody would actually read the changes, but I'm sure they quickly realized their error when people started deleting their accounts en masse.

      We are expanding the existing list of prohibited activities to include the sending, posting, or publication of messages, content, or materials that meet certain criteria.

      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

      5. 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

      • by Anonymous Coward

        The mid-term elections are coming up next month. Short of cheating like mad again, democrats and their WEF masters have to put their crazy ideas on the down-low for a bit in the hope that voters forget all the insanity they're injecting into everyone's lives.

        • What flavor kool-aid do you prefer? Grape, Strawberry, or maybe Cherry? Does one flavor do a better job of masking the crazy pills being mixed in?

        • -1, Not consistent with Wokeness Narrative

      • "Objectionable" at PayPal's sole discretion - if that stays, it pretty much covers anything else they could ever want.
      • How could that ever thought they would get away with it, though? They would take $2500 from you, solely at their discretion of what constitutes misinformation? It seems like that would happen exactly once before they were in court trying to defend such a ridiculous fine.

        • by torkus ( 1133985 )

          Misinformation 'fines' aside, the TOS/AUP calls for a $2500 fine for ANY violation a seller commits.

          You acknowledge and agree that $2,500.00 U.S. dollars per violation of the Acceptable Use Policy is presently a reasonable minimum estimate of PayPal’s actual damages...

          Among the very, very many ways to violate any of PP's terms...

          Conduct your business or use the PayPal services in a manner that results in or may result in;
          complaints;

          Pure insanity and, frankly, why PP needs to be regulated as a bank...I don't think any of these crazy 'fines' would fly outside the US.

      • Doesn't seem to say that the offending behavior has to happen on PayPal's platform.

    • by PPH ( 736903 ) on Saturday October 08, 2022 @06:19PM (#62949943)

      So, this published policy change constitutes 'misinformation'. Is PayPal going to have to throw $2,500 into the fine jar?

    • You'd think so, but you're probably giving far too much credit to people. You ever look around at your place of employment and wonder how anything gets done since so many people don't seem to have a clue what they're doing? It's not just where you work. Stupid shit goes on all the time, pretty much everywhere. I could very easily see this being a case of some low paid and overworked secretary emailing someone the wrong file, and the recipient of that file just blindly copied and pasted the text into the bac

    • by gweihir ( 88907 )

      I highly doubt that, There is no way Legal&Compliance will sign off on something this illegal. Somebody screwed up massively here.

    • Even if this were the wrong version that got published, that this was even in a draft is yet another indicator of how PayPal views their role - the arbiter of orthodoxy. Maybe they said the quiet part out loud? Certainly this 'mistake' is entirely in line with their past actions.

      I cancelled my PayPal account over the business with the Free Speech Union.

    • I wonder if the terms were meant for one or more countries outside of the US.
  • by Anonymous Coward on Saturday October 08, 2022 @06:13PM (#62949931)

    They've too often played arbiter and tyrant. They don't deserve business because they want to control customers rather than serve them. I even saw them censor Just Thinking Out Loud with Desi-Rae (a Jamaican girl documenting her experience and thoughts while in America). She dared to have political opinions on YouTube and despite her being respectful, they decided that she should have her account frozen because some people whined that she wasn't in the hivemind.

  • by rcb1974 ( 654474 ) on Saturday October 08, 2022 @06:18PM (#62949937) Homepage
    They never gave me a definite answer, but here the copy/paste of my chat with PayPal.

    PP: If you haven't already, let us know why you're contacting us. Feel free to step away and we'll notify you by email or push notification when we've responded.

    ME: I want to better understand this paragraph in the new terms of service as well as the new $2500 fine:
    5. 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 promoteviolence, 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.

    PP: Hi Richard, My name is Anup. Welcome to PayPal Messaging, I'm looking into your previous messages and reviewing your account. I request you to stay connected with me and I'll respond to you in a few minutes.

    ME: ok. My question is this: Would I be in violation of PayPal's new terms of service if I accepted payment for a T-shirt that said "Gender is Immutable", and/or "We will not change the definition of gender in order to 'affirm' your delusions"?

    PP: Richard, I certainly understand your concern in this matter. Please allow me a minute to check from my end. Please stay connected.

    ME: thanks. i just sent a screenshot of the t-shirt design in question. another example: a t-shirt that had the gay flag surrounded by a red circle with a line through it, or a t-shit that said "homosexual behavior is sinful"

    ME: are you still looking into this? it has been 10 minutes.

    PP: Thank you for your patience. Richard, it is not necessary for the acceptance of payments for the items that you're referring to. If there is any violation on the PayPal's user agreements then there might be a fine charged. I would request you to go through the below link for detailed information on the same. If there is any updates, you'll be notified via email. https://www.paypal.com/us/weba... [paypal.com] I have forwarded the feedback provided from your end to our Internal Team. Rest assured they will surely consider and work on this.

    ME: ok. How will they contact me with the answer? I've already read the full agreement, which is the entire reason why I am contacting PayPal at this time. My question is simple: if I were to use PayPal to sell merchandise that says things such as "gender is immutable", "gay sex is sinful", "we will not redefine gender in order to affirm your delusions", etc, then would I be in violation of the new terms of service that take effect on November 3rd? The answer is either yes or no, and I need to have an answer in order to plan for the future.
    • by bobby ( 109046 ) on Saturday October 08, 2022 @07:09PM (#62950027)

      Thanks for posting that. Pretty much a waste of your time, but it's good that you did it to establish a data point.

      My deduction: they'll do whatever they want whenever they capriciously want and steal your money. The only fix is to close accounts. I wish and hope that many many people do close their paypal accounts. I've been itching to for months.

      That they backpedaled on this thing only tells me 1) their eventual intent (to steal money whenever they feel like it) and 2) testing the waters to prepare for when they actually implement the theft policy.

      Who gives them the power and right to levy fines, anyway? Is our court system falling apart? Anyone can be a judge, jury, and executioner now?

      Interesting dovetail: recently for many months I was having trouble buying with paypal. Payments were blocked, even though I could log in to my account, see everything. Many wasted hours on the (useless) chat, on phone, emails- they kept telling me to "provide alternate funding sources". How much more vague can people get? They would not tell me what that meant. But after much weeping and gnashing of teeth, I got them to say they wanted me to "attach a bank account". Well, that's not going to happen, and I told them many different times that if that's the only solution, I want to close my account.

      I finally figured out what might have been the problem- newer browser version (Vivaldi) includes built-in tracking and ad blocking. It's subtle but strong. When I noticed the little icon (badge?) and turned it off, I was able to buy using paypal again.

      But the point is: rather than helping fix a technical problem, _every_ interaction with "help" tried to get me to "attach a bank account". Now I understand why... Scarier and scarier times.

      • by waspleg ( 316038 )

        The intent to steal money came with their, not only embrace of, but shady attempt to funnel people in to - Crypto. My account is from when they were just part of Ebay. I use it daily. I know there are a lot of businesses that hate Paypal but as a customer I've had almost 0 issues with them.

        If they want to fuck with me, I will walk - they are, at very long last, not the only service that provides a buffer between retailers and your bank that doesn't cost usurious interest rates.

        I didn't see the changes th

        • by bobby ( 109046 )

          Yeah, I've had a paypal account for 15 or so years. Recent problems are the first I've had problems, that I can remember.

          Oh yeah, a year ago someone paid me through paypal for some work I did. They would not transfer the $ back into my account without a LOT of personal info- more than my bank has. I refused, saying it didn't make sense because my bank doesn't even have that info. It might be some new federal regulation. Eventually I got them to send me a check. Which of course I deposited into a bank

      • My deduction: they'll do whatever they want whenever they capriciously want and steal your money. The only fix is to close accounts. I wish and hope that many many people do close their paypal accounts. I've been itching to for months.

        I closed mine years ago and regret not closing it sooner.

    • The greater fool is the one who tries to argue with a fool.

    • Sorry my friend, Anup has no answers for you.
  • by cirby ( 2599 ) on Saturday October 08, 2022 @06:35PM (#62949969)

    ...and the link to their "Acceptable Use Policy" led to a PDF that was... blank.

    Some last-minute ass-covering going on.

  • by thegarbz ( 1787294 )

    With Paypal being registered as a bank in Luxemburg and covered by financial regulations there, I highly suspect they have zero ability to "fine" anyone. They are a payment processor not a social network.

    I suspect this was published without legal review and some lawyer told them to reign it in before they get in trouble.

    • Um they may be registered there but anywhere they operate they would be subject to local laws and regulation's. Pretty sure they wouldn't have any legal ground to stand on if they were to fine people this and be subject to a very nasty lawsuit if they did.
    • If someone at PayPal is publishing legal documents without the legal team signing off - people will be getting fired.

      But then again - they had an email campaign and website updates to support the document - indicating it was a planned and coordinated change.

      Interesting how people think corporations are able to make single button click whoopsies with all the red tape, bureaucracy, and various teams involved to support these kinds of efforts.

      • by gweihir ( 88907 )

        Interesting how people think corporations are able to make single button click whoopsies with all the red tape, bureaucracy, and various teams involved to support these kinds of efforts.

        They can. Just remember all the instances were large names forgot to renew domain name registrations...
        Although this one will probably get somebody fired, because _anything_ published by a bank has to go through Legal&Compliance and every employee will have been told so. Repeatedly.

        • by cstacy ( 534252 )

          Interesting how people think corporations are able to make single button click whoopsies with all the red tape, bureaucracy, and various teams involved to support these kinds of efforts.

          They can. Just remember all the instances were large names forgot to renew domain name registrations...
          A

          Domain name renewals are not C-level issues. That's some random IT peon fucking up.

          • by gweihir ( 88907 )

            Domain name renewals are not C-level issues. That's some random IT peon fucking up.

            This is not necessarily C-level either. Just requires somebody to fuck up and think they can push this directly...

      • If someone at PayPal is publishing legal documents without the legal team signing off - people will be getting fired.

        If they are a toxic company sure. But the reality is even documents and processes which require legal sign-off are imperfect and error do occur. I myself have internally published something that went through legal review that was subsequently post publishing retracted at the request of legal.

        Scum sucking underworld bottom feeding lawyers are people too. Well maybe not people, but they are imperfect.

    • by gweihir ( 88907 )

      Luxemburg? Then no. If they "fined" anybody, they would probably lose their license unless they can prove it was a mistake. All they can do is sue people or, if a crime has happened", report them to the police. They cannot even simply terminate an account. Banks are not allowed to play jury, judge and executor. At least not in the EU.

    • by taustin ( 171655 )

      I suspect this was published without legal review and some lawyer told them to reign it in before they get in trouble.

      Possible, but it seems more likely to me that it was approved by their staff lawyers, who are contract lawyers, and some outside attorney with more expertise in public policy law - particularly civil rights law, given how likely it is that a policy like that would end in discrimination against a protected class - explained it to them. In detail.

  • by JaredOfEuropa ( 526365 ) on Saturday October 08, 2022 @07:10PM (#62950031) Journal
    I would have thought that PayPal should in no way shape or form be allowed to levy a fine for "spreading misinformation". That is a matter for the courts,
    • by taustin ( 171655 )

      They're a payment processor, and this is a contract term. In the same way that you, the merchant, agree to let your merchant service deduct transaction fees from your bank account every month. Calling it a "fine" is disingenuous (and could cause them no end of legal problems), but fees for contract violations are routine in all contract language.

      If you don't like the terms, don't agree to the contract.

    • This looks like a heist to me.Change their terms in an effort to make the theft legal. Picture it, if Paypal took $2500 from everyone with a connected bank account or card, they would then make more money on the interest of that haul than their business could possibly make. So... that is exactly what they were doing. i will be talking to my bank to make sure that PayPal no longer has access to my bank account. We trusted Paypal. Now that trust is gone forever.
  • Paypal is fine for selling video cards on ebay or whatever but it seems like if you have a real business, you should have a real payment processor. I use paypal to make payments because it's easy, but I will make CC payments to sites too. I wouldn't run a lot of money through there at once, period.

    • I use it to send friends cash, as well as commissions for artwork or whatnot. As a consumer/payer, it works well enough, provided one doesn't attach their bank account to it. However, if I were running a business, I'd probably go elsewhere. Worst case, use Square, which is "good enough" for small businesses.

  • by fahrbot-bot ( 874524 ) on Saturday October 08, 2022 @08:05PM (#62950119)

    Like using the terms "Like New" and "Slightly Used" ?

  • by kenh ( 9056 ) on Saturday October 08, 2022 @08:31PM (#62950143) Homepage Journal

    May I fine PayPal for spreading mis-information?

    BTW, when did PayPal become a social media website?

  • If we allow payment processors to police speech, eventually everything will be bland and boring and there will be no public discourse anymore.

    • What will happen is that people will go back to cash, or maybe even cryptocurrencies would advance. A stablecoin that has anonymity like Monero would gain tremendous ground, provided it is done "right", perhaps by a non-profit, who can assure that if 100% of coin owners want their coins exchanged into dollars, they can get them.

      Right now, PayPal is a lot easier to deal with than cryptocurrency. If the hand starts closing, then we can see businesses start accepting other payment methods, or even cryptocurr

      • by gweihir ( 88907 )

        Also, bank transfers may make a come-back. In the EU, a bank transfer is 1 cent in cost. (Last I saw it was capped at 0.2 cent...) Domestically, I pay 90% bank transfer, because it is easy, fast and free. Internationally, it is more PayPal (outside of the EU) and credit card (inside the EU) with some variation, but it is only because it is convenient.

        Basically, if the credit-card operators and PayPal overdo it, their business can go elsewhere pretty fast. And it will.

    • We're already allowing it. Credit cards and banks and other payment processors have been banning payments to online sex workers for over a decade, closing accounts when they find them and keeping the money. Hell, they classed condoms as a prohibited category of goods and refused to change that, even when publish backlash shamed them into making an exception for an online condom store.

      Welcome to capitalism. Dollars matter more than your freedom of speech and the wealthy are increasingly the only ones allo

  • This fee is over a year old. The new line that was added is just about misinformation, but the $2,500 fee is applied whenever you violate any acceptable User Policy of PayPal. So if you engage in Hate or other like actions you can be charged a fee of $2,500. Whether you are a consumer or a business.
    • In a normal world a payment middleman should have no authority to fine or charge fees for perceived discrimination - that is for the authorities having jurisdiction to decide.

      This is a shame, I sort of liked the idea of paypal and use it as a shield from giving a credit card number to random companies on the internet. This is what I get for acting like a sheep and just clicking past the 'legal' agreements.
  • Why would PayPal have any business in deciding what one can or can't say, even if they deem it to be hate speech? Am I missing something?
  • Who needs government censorship, when you can get the companies to do it all for you?
    • Government getting companies to oppress people in the direction the government would like them oppressed is textbook fascism.

      All that marching about with goose steps and snazzy arm bands is just special effects... the sort of visual that seeps into any totalitarian system. Mistaking the special effects of totalitarianism for fascism is a bit like mistaking fireworks for the American Independence Day celebrations - Americans USE fireworks in those celebrations, but the fireworks are NOT themselves "Independe

  • You think the Paypal move was bad? Wait for CBDCs

    CBDCs need to be outlawed before they get started.

  • I just read the Paypal "User Agreement" (for the first time), and it's a horrorshow. There is *still* a clause in there stating that "spreading misinformation" is among the "restricted activities" for which they can penalize you. Penalties include "liquidated damages" of $2500, which (under the User Agreement) you agree in advance is "fair compensation" for Paypal's expenses and for potential "damage to their reputation"; other potential penalties include freezing all the assets in your account.

    It's alrea

  • Paypal changed some security settings on my account without notice. I think I must have been part of some kind of 'ease of use' A/B test. I did not appreciate suddenly not needing my password to make purchases, really I did not like that one bit. I wrote to Paypal explaining myself and they did not care, trying to sell me on their complete lack of security. I wrote 'Fuck You' to Paypal and they lifetime banned me.

    Not surprised that Paypal pulled some more bullshit on paying customers. Paypal is dogshit and

  • It's contractual, liquidated damages. I would imagine the only reason that the retraction may have referred to it as such is that everyone screaming about it decided to call it a 'fine', since apparently calling it a 'contractual penalty for saying things PayPal decides they don't like' wasn't pithy enough.

    Such a thing is not illegal, at least not in the US, and I suspect not in many other relevant jurisdictions. You can agree to just about anything you want in a contract, with few exceptions - provided

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