PayPal put out a new policy which would fine users $2,500 dollars if they were found promoting what they deemed to be misinformation.
They quickly reversed course following massive backlash.
A spokesperson for the financial service said the policy went out “in error” and the company would not be fining people for misinformation.
The Consumer Financial Protection Bureau is now investigating.
From CNBC:
An update to a policy for PayPal users said those promoting misinformation could be subject to damages of $2,500 dollars drew sharp criticism last weekend – and the company’s stock price tumbled at the start of the week.
Then, a PayPal spokesperson said that the notice “went out in error” and included “incorrect information,” adding “PayPal is not fining people for misinformation.”
That hasn’t stopped the head of the federal government’s top consumer watchdog agency from keeping a close eye on these developments and looking into how major financial technology firms dictate how consumers engage with their platform, what constitutes a violation, and what the repercussions, including damages or fines, will be.
Watch: Partial Transcript below.
From the video:
“I’ve never actually heard of a payment system thinking they could fine someone for legal expression that their users are making…We have ordered most of the big tech firms and payment companies to provide us with information about how are they making decisions about who they take off their platforms but we also have to look into whether they believe they can be fining users for legal activity.”
