PayPal stock drops after outcry over now-withdrawn plan to fine users for 'misinformation'
PayPal's stock had decreased by 5.5% as of Monday morning trading.
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PayPal’s stock plummeted by more than 6% on Monday after the financial services firm was forced to reverse course on a policy that would have fined users $2,500 for spreading "misinformation" on its platform.
The company on Saturday withdrew the policy, claiming it was incorrectly sent out to users, after the proposed change ignited a firestorm on social media. "PayPal is not fining people for misinformation and this language was never intended to be inserted in our policy," the firm said
Prior to PayPal's reversal, it was set to impose the new terms on Nov. 3, which laid out a list of policy violations that "may subject [users] to damages, including liquidated damages of $2,500.00 U.S. dollars per violation, which may be debited directly from [their] PayPal account."
One of the violations included any activity that "promotes misinformation," though PayPal did not clarify the definition.
Former PayPal President David Marcus posted on Twitter following the reports on the policy, "It's hard for me to openly criticize a company I used to love and gave so much to. But @PayPal's new AUP 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."
Elon Musk, Tesla CEO who co-founded PayPal decades ago, commented on the post that he "agreed" with Marcus.
PayPal's stock decreased by $5.65 Monday by the close of market, a 6.27% drop. This year alone, the firm's shares are down more than 50%.
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