Social media posts claim PayPal is implementing a policy that will fine users who spread misinformation. This is misleading; the online payments platform said an update to its terms of service was released in error, that it was quickly corrected and that the company has no penalties for those who spread false claims.

"#PayPal recently inserted a policy effective November 3rd to find its users $2500 for #misinformation," says an October 13, 2022 Instagram post.

The post followed October 7 reporting from The Daily Wire on an update to PayPal's acceptable use policy.

"Among the changes are prohibitions on 'the sending, posting, or publication of any messages, content, or materials' that 'promote misinformation' or 'present a risk to user safety or wellbeing,'" the conservative news site said.

The move drew fire from former PayPal president David Marcus, who tweeted October 8 that the policy "goes against everything I believe in."

Billionaire Elon Musk, a founder of PayPal, replied in a tweet: "Agreed." And US Senator Marsha Blackburn, a Republican from Tennessee, said on Twitter that PayPal was "censoring" speech.

However, a spokesperson for the company said its policy was erroneously changed and then reversed to exclude the language on misinformation.

"An Acceptable Use Policy (AUP) notice recently went out in error that included incorrect information," PayPal said in a statement released October 8 and later emailed to AFP. "PayPal is not fining people for misinformation...

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