PayPal won’t fine users for misinformation posts, policy posted “in error”

PayPal on Saturday denied that it intends to fine users who use its service to "promote misinformation," saying an earlier policy update notice describing such a change was sent "in error."

Driving the news: A new PayPal Acceptable Use Policy (AUP) expanded the company's list of prohibited activities to include “the sending, posting, or publication of any messages, content, or materials” that "promote misinformation" or "present a risk to user safety or wellbeing,” Mediaite reported.

• Those who violated the policy could be subject to a fine of $2,500 debited from their PayPal account.
• The policy was expected to go into effect on Nov. 3.

State of play: The news caused a stir on Saturday after Lightspark CEO David Marcus — former president of PayPal — said on Twitter that the new policy "goes against everything I believe in."

• "A private company now gets to decide to take your money if you say something they disagree with. Insanity," he added.
• "Agreed," Elon Musk tweeted in response to Marcus.

What they're saying: "An AUP notice recently went out in error that included incorrect information," a PayPal spokesperson told Axios on Sunday.

• "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," they added.

Editor's note: This article has been updated with a PayPal statement.