$2,500 “misinformation” punishment sparks controversy
Paypal users already have a large list of gripes against the online payments platform and a recent controversial policy change ( which Paypal now states as an error) has not changed sentiment towards the provider for the better. The policy stated that users would be fined $2,500 for spreading misinformation, a policy that ended with the community starting the “BoycottPayPal” hashtag on Twitter.
Google searches for how to cancel PayPal and any PayPal accounts were also on the rise since the policy change came to light. “How to delete PayPal” and “Delete PayPal” were also some of the more trending searches on the search website as well. This was not just in the United States but globally as the search terms for deleting the payments app spiked around the world after the announcement and subsequent apology.
The policy has even been lamented by major names in entertainment and even former PayPal employees including the former president of the company David Marcus and even Elon Musk.
Would you believe even Hercules thinks this move was a terrible one made by PayPal but not exactly all that surprising?
There were calls to cancel accounts to make a statement made by some includent US House Candidate Lauren Boebert.
More and more anger has been thrown at PayPal stemming from the Acceptable Use Policy but it seemed the anger against the company had already been built up from past frustrations.
There are of course some that have defended the company but the amount against far surpasses that.
The Acceptable Use Policy was meant to take effect November 3 and it included penalizing “the sending, posting, or publication of any messages, content, or materials that promote misinformation or present a risk to user safety or wellbeing” stating those in violation would be fined $2,500 which would be taken directly from their accounts. On the surface, it sounds as if PayPal wants to add a certain layer of protection to its services but some state that this policy would allow PayPal to take advantage of the rules and fine anyone they wanted on the “pretense” of spreading false information.
A spokesperson for PayPal tried to quell the situation and explain that the wording was completely wrong and should never have been put on the policy, stating it was published in error.None of this has been helpful for the payments platform as many issues and bad decisions made by the company have proven for tumultuous times
The shares of PayPal have lost more than half of their value this year alone . Executives of PayPal have reset expectations to align with the new realities of the economy that involve crypto payments and new regulations. PayPal execs also acknowledged that they were too upbeat about the ways trends from the pandemic era would carry. With all of these issues, the feelings of analysts were more positive as PayPal had welcomed communications with Elliot Management which made an investment into the company. The leadership team of Paypal had promised to focus and narrow priorities in order to drive better core performance. Currently the PYPL stock is down another 6% since midday Monday and that may also be due to the backlash from the AUP.