The online payment service PayPal is nixing its controversial decision to impose a fine for its users for misinformation. The company apologized for the “confusion” the decision caused and said it was an unfortunate error.
Late last week, PayPal issued an update to its policy that contained an unusual prohibition of “sending, posting, or publication of any messages, content, or materials” that contain “misinformation,” as that company put it. The users who would be found “guilty” of spreading “misinformation” were risking a $2,500 fine.
As soon as users discovered the clause, it became a hot topic on social media. PayPal faces significant criticism for the decision, prompting the company to backtrack on its original plan and try to clear things up.
“PayPal is not fining people for misinformation, and this language was never intended to be inserted in our policy. We’re sorry for the confusion this has caused,” a Paypal spokesperson said in a statement.
Mistake or not, this controversy did quite damage to PayPal’s public image and sent the company’s stock on a downward trajectory. The shares of PayPal have dropped 5.68% to start the week compared to the $90.17 per share close on Friday. The stock is 56.37% down year-to-date.