FACT CHECK: Is PayPal Fining Users $2,500 For Misinformation?
A post shared on Facebook purports PayPal reinstated a $2,500 misinformation fine despite large amounts of backlash.
While PayPal does fine accounts $2,500 for fraud and the sale of counterfeit goods, the policy on misinformation was retracted in October and has not been reinstated.
Twitter CEO and cofounder of PayPal, Elon Musk, told employees that subscriptions are necessary to save the company, CNBC reported. Musk told employees, after massive layoffs. that “bankruptcy isn’t out of the question” due to the state of Twitter’s finances, The Guardian reported.
The Facebook post purports PayPal is fining users for misinformation, “PayPal reinstates $2,500 misinformation penalty,” the post reads. “The payment processor has restored a controversial fine just two weeks after customer backlash forced its removal.” (RELATED: Did Justin Trudeau Blame Resentment Toward Politicians On Climate Change?)
The claim is incorrect. The initial document outlined that promoting misinformation would violate the user agreement and could result in a $2,500 fine. The agreement also gave PayPal “sole discretion” on what would be considered promoting misinformation.
PayPal’s most recent version of their Acceptable Use Policy, updated Nov. 2, does not feature any language about misinformation. In the company’s User Agreement, the fine applies to accounts that are “associated with fraud or the sale of goods that are counterfeit or otherwise infringe on intellectual property rights.”
There are no credible news reports suggesting PayPal has reinstated this fine regarding sharing incorrect information. In Early October, PayPal Holdings Inc. issued a retraction of their misinformation fine, claiming the language in their policy was a mistake and was not meant to go out, Reuters reported.
Check Your Fact has reached out to PayPal for comment and will update this piece accordingly if a response is given.
This is not the first time false information about one of Musk’s companies has been shared on social media. Check Your Fact recently debunked a post claiming Musk is implementing a special verification for Jewish Twitter users.