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Fact Check-Confusion on social media as PayPal says policy to fine customers $2,500 in damages for 'misinformation' was issued in error

Social media users are saying they will be deleting their PayPal account after the company said on Monday that they issued an update saying that customers could be fined $2,500 in damages for sharing misinformation “in error.”

Some continued to share the claim after PayPal’s clarification. (here), (here).

On October 10, Reuters reported a spokesperson for the company saying, “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.” (here).

According to the company, an earlier policy update that said customers could have to pay $2,500 in damages for misinformation was sent in error.

The original policy update sparked widespread criticism on social media, with some saying that the policy was a violation of their free speech (here) (here).

Shares of the company were down about 6% since the update. (here).

VERDICT

Missing context. A PayPal spokesperson said that the policy was updated as a mistake and customers will not be fined $2,500 for misinformation.

This article was produced by the Reuters Fact Check team. Read more about our work to fact-check social media posts  here . 

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