On Monday, PayPal Holdings Inc (PYPL.O) announced that it will not penalize users for receiving false information and that a previous policy change stating that users would be required to pay $2,500 in penalties was delivered incorrectly.
After the update, which PayPal claimed “contained inaccurate information,” provoked severe outrage on social media over the weekend, shares of the San Jose, California-based corporation fell by about 6%.
“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 spokesperson for the company said.
Last week, according to a number of media sources, PayPal released a policy change that forbade users of its services from engaging in actions it defined as “sending, publishing, or publication of any messages, content, or materials” promoting false information.
According to sources, the new policy, which stated that users might be required to pay fines of $2,500 for each breach, was set to take effect on November 3.
“A private company now gets to decide to take your money if you say something they disagree with. Insanity” Marcus tweeted.
Elon Musk, the co-founder of PayPal and the wealthy CEO of Tesla Inc (TSLA.O), responded “Agreed” in response to Marcus’s post. Bloomberg News first reported PayPal’s explanation.
