PayPal loses $5 billion of its market value over the $2,500 misinformation fine debacle as flood of PayPal users canceled their accounts
Over the weekend, PayPal updated its new acceptable use policy that would have permitted the payment giant to withdraw $2500 from the accounts of users who spread “misinformation.”
The company later backtracked and reversed course, saying the notice went “out in error” and will not seize funds from its customers for promoting “misinformation.” The sudden reversal came after backlash to the presumed policy erupted on Twitter.
The payment giant said it will no longer fine $2500 users who engage in “misinformation” or “hatred” against protected identities, adding that the ‘notice recently went out in error’ and that it never intended to penalize account holders on these grounds. But it might already be too late.
Today, shares of PayPal fell more than 6% (about $5 billion in market capitalization) after a blowback from the company’s botched acceptable use policy update. PayPal’s stock price has since climbed back up to a loss of 5.86% as of the time of writing.
That’s not all. In response to the announcement, a flood of people also canceled their PayPal accounts.
“I have hand enough,” one PayPal user tweeted.
— Chuck Nospam (@ChuckNospam) October 9, 2022
The new policy, which was supposed to have taken effect on November 3, would have allowed PayPal to withdraw $2,500 from your account if they find anything you’ve said to be objectionable, including “misinformation” or “discrimination” of groups or individuals based on gender identity.
Another PayPal said:
“No one accidentally publishes a policy where they steal $2,500 every time they say you spread misinformation or hurt the feelings of the pronoun brigade. They plan to do this when they know they can get away with it. Cancel your PayPal & Venmo accounts (they own Venmo).”
No one accidentally publishes a policy where they steal $2,500 every time they say you spread misinformation or hurt the feelings of the pronoun brigade. They plan to do this when they know they can get away with it. Cancel your PayPal & Venmo accounts (they own Venmo). https://t.co/QYzTAxq0qZ
— Robby Starbuck (@robbystarbuck) October 9, 2022
But in an email, a PayPal spokesperson told The Epoch Times in an email: “An AUP 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,” the spokesperson added.