PayPal has backtracked on a published policy that would have fined users $2,500 for spreading “misinformation” and claimed the policy update had gone out in “error”.

The company attention on Twitter after former president David Marcus blasted PayPal for writing in a policy that it could seize customer’s money if the company found their views objectionable.

“It’s hard for me to openly criticize a company I used to love and gave so much to. But @PayPal’s new AUP goes against everything I believe in,” Marcus tweeted. “A private company now gets to decide to take your money if you say something they disagree with. Insanity.”

Elon Musk responded to the tweet with one word: “Agreed.”

PayPal has since claimed the update was made in “error” and released a statement to National Review assuring customers would not have their money seized.

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“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 written statement said.

The Daily Wire first reported the changes due to be made to the PayPal User Agreement on October 8th.

These changes included prohibitions on “the sending, posting, or publication of any messages, content, or materials” that “promote misinformation.”

While the 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,” including race, religion, gender or gender identity, and sexual orientation.

Breaking the rules “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,” the new policy had warned.

PayPal came under fire in 2018 after PayPal sent one user an email saying their wife’s death breached the company’s terms of service.

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