PayPal reinstates $2,500 misinformation penalty

PayPal reinstates ,500 misinformation penalty

The payment processor has restored a controversial fine just two weeks after customer backlash forced its removal

Online payments giant PayPal has quietly readopted a wildly unpopular policy allowing it to fine users $2,500 every time the company believes they violated its terms of service with transgressions as vague as publishing “harmful, obscene, harassing or objectionable” messages. 

While PayPal had removed the offending policy from its terms of service earlier this month after widespread outcry and calls to boycott it, users noticed a variation of the text had returned on Wednesday and took to social media to call the company out.

Under the revised terms of service, merchants who “receive funds for transactions that violate the Acceptable Use Policy” are warned they will be on the hook for $2,500 for every violation of that policy, with the funds being deducted from their accounts at PayPal’s sole discretion.

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PayPal reinstates $2,500 misinformation penalty

 

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