Update: PayPal Backs Off Policy To Pull $2,500 From Users’ Accounts If They Promote ‘Misinformation’

New censorship policy by the financial services company takes effect on November 3 -- just days before the midterm elections.

Image Credits: Avishek Das/SOPA Images/LightRocket via Getty Images.

Update (2:43PM CST): PayPal has reportedly rescinded its updated policy to fine users $2,500 fines if they pushed purported “misinformation” following criticism by Tesla founder Elon Musk on Saturday.

“An AUP [Acceptable Use Policy] notice recently went out in error that included incorrect information,” the company reportedly stated. “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.”

Tesla and SpaceX founder Elon Musk had weighed in on PayPal’s updated censorship policy Saturday, saying he “agreed” with a statement made by David Marcus, cofounder of Bitcoin-based company LightSpark, that PayPal’s new policy was “insane.”

Original story below:

PayPal announced a new policy allowing the company to sanction users with $2,500 fines if they advance purported “misinformation” or risk user “wellbeing.”

The financial services company, which has already banned certain individuals and groups over their political views, will expand its “existing list of prohibited activities” on November 3 — five days before the midterm elections.

Included in PayPal’s updated list of “prohibited activities” is posting messages or materials that “are fraudulent, promote misinformation, or are unlawful.”

Violating this new policy could result in a $2,500 fine “debited directly from your PayPal account.”

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)…

Over the last several weeks, PayPal banned numerous groups for seemingly political purposes.

First, PayPal banned the nonprofit Free Speech Union over ties to Russell Brand, who moved his podcast from YouTube to Rumble in a statement against online censorship — it restored the accounts a week later after receiving backlash.

Then PayPal shut down the account of the parent activist group UsForThem, who campaigned to keep schools open during the COVID pandemic.

It also sanctioned Gays Against Groomers, a group that’s been pushing back against drag queens giving inappropriate performances in schools.

Jeremy Tedesco, vice president of corporate engagement at Alliance Defending Freedom, said that PayPal’s new policy will almost certainly have a “chilling” effect on free speech.

“Whatever PayPal’s intentions may be, censorship and chilling free speech is precisely the effect of these kinds of vaguely worded policies,” Tedesco told The Daily Wire. “We’ve seen social media companies use similar policies to stifle free speech on their platforms. We can expect a similar outcome with PayPal.”

Read the updated policy:

Twitter: @WhiteIsTheFury

Truth Social: @WhiteIsTheFury

Gettr: @WhiteIsTheFury

Gab: @WhiteIsTheFury

Minds: @WhiteIsTheFury

Parler: @WhiteIsTheFury