A fine print mistake in the company’s misinformation policy has ironically led to the spread of misinformation and “delete PayPal” trending worldwide. It also brought PayPal’s misinformation fine into the limelight with the company issuing a clarification that wording is responsible for the confusion.
Perhaps the most telling factor was that Google searches for the phrase ‘delete PayPal’ surged by 1,392% after people read that the online payment giant will fine users $2,500 for spreading misinformation. Customers reacted strongly to the wording that held them liable for “damages.” Last year, PayPal had started offering crypto services in the UK. Enraged users called for customers to switch completely to crypto and deleting the app.
The Delete PayPal Movement
As the PayPal misinformation fine appeared to leave the decision on what constitutes misinformation at the company’s sole discretion, angry users stormed social media to give vent to their anger.
The new policy that contained the PayPal fine for misinformation was set to come into effect on November 3. But keen-eyed users were quick to spot the steep fine of $2,500 and how vaguely the policy was worded, leaving power in the hands of the company. The term “Boycott PayPal” also trended on Twitter over the weekend.
Critics of the new PayPal policy also found purchase with some of its very own including former PayPal President David Marcus and PayPal co-founder Elon Musk. Marcus did not hold back, writing, “It’s hard for me to openly criticize a company I used to love so much. But PayPal’s new AUP (Acceptable Use Policy) goes against everything I believe in. A private company now gets to decide to take your money if you say something they disagree with. Insanity.”
Some Twitter users responded with sarcasm to PayPal’s week-old tweet – “Small steps achieve big goals. What steps have you taken to reach your financial goals this month?” One user @BigglesMac wrote back “In order to reach my financial goals – I deleted PayPal and now feel comfortable knowing they won’t arbitrarily confiscate $2,500 from me. Small steps to achieve big goals,” with over 2,000 people liking his post.
Google searches for “how to cancel PayPal,” “cancel PayPal account,” and “How do I delete a PayPal account” were still trending on Monday.
The social media ire also affected the company’s stock falling by almost 6% and losing nearly $6 billion in market value on Monday. Shares closed at $84.52 on Monday, down from $90.18 on Friday.
Deleting the PayPal Fine
Financial World found that both “delete PayPal” and “Cancel PayPal” searches went up by a high volume after the reveal.
A company spokesperson stated, “PayPal is not fining people for misinformation and this language was never intended to be inserted in our policy.” The company also apologized for the confusion and tried to brush it off as a minor error. PayPal has since then retracted its policy.
However, social media users were not satisfied. Many are still calling for blood as they believe that the company backtracked only because it got caught.
Congresswoman Lauren Boebert reminded people about the power in speaking up. After the PayPal fine was removed from the PayPal policy, she tweeted to remind people that it is important to fight back. Senator Tim Scott revealed on Twitter that his office will investigate the role of private companies in playing “thought police,” and promised to take action to prevent this type of corporate activism.
A spokesperson for Financial World commented, “PayPal has received backlash from their announcement, which was quickly retracted. The backlash can be clearly seen on social media but also in these huge search spikes for people wanting to remove themselves from the platform altogether.”
Efforts to police misinformation are always tricky. But the PayPal misinformation fine reignited the discourse around censorship and the role played by big tech. In 2021, PayPal had bought BNPL player Paidy to attract the younger generation. Before the delete PayPal movement went viral, the company had approximately 429 million customers and merchants who used its platform for financial transactions.
