PayPal Faces Backlash on Social Media Over New Leaked Policy Document

Oct 11, 2022

PayPal Faces Backlash on Social Media Over New Leaked Policy Document

PayPal is having problems.

Over the last eight months, financial services have suffered a major decline.

The company's stock price has fallen 52.2% since January, while the market value has dropped by nearly $114 billion since then to $104.3 billion.

Recent months have seen investors' concerns over fintech profitability grow as fears of a recession have outweighed all other considerations.

Federal Reserve interest rate increases to fight inflation, which has reached its highest level in forty years, have scared investors, who fear the economy will experience a so-called hard landing.

In general, rising interest rates are a good thing for financial institutions. The lenders earn money from the borrowers by charging them more than the borrowers pay them.

A $2,500 Fine for Misinformation

The problem, however, is that if the economy suddenly weakens, it will most likely have a significant impact on many households as a result. A result of this could be an increase in unpaid bills and a growing number of financial firm defaults on loans.

PayPal generates most of its revenue by charging fees on transactions made by consumers using its platform. As the volume of transactions declines, PayPal's revenue will decrease as well.

PayPal, one of the first companies to offer the purchase and sale of Bitcoin and Ethereum, the two most valuable crypto assets, is also struggling with the decline in interest among small investors for cryptocurrencies.

Almost all of the crypto craze that peaked in November 2021 has faded away. Trading volumes have dropped sharply in recent months, and retail investors who had previously arrived on the market mostly via PayPal and CashApp, Block's platform, have withdrawn from the industry. The sector has been experiencing a kind of lethargy for quite some time.

However, PayPal just created another major problem all on its own. Documents were just leaked warning customers that they will face financial penalties if they violate the company's policies.

When a customer provides false information, they could be fined $2,500. If a client commits four acts of misinformation, they could be fined $10,000, which PayPal will immediately deduct from the customer's account.

"You are independently responsible for complying with all applicable laws in all of your actions related to your use of PayPal's services, regardless of the purpose of the use," PayPal's "Acceptable Use of Policy" states.

"Violation of this Acceptable Use Policy constitutes a violation of the PayPal User Agreement and may subject you to damages, including liquidated damages of 2,500.00 US dollars per violation, which may be debited directly from your PayPal account".

A notable feature is that the document is marked "Last Updated November 3, 2022". Thus, implementation of the policy is just around the corner.

Public Outrage

As a result of the leak, PayPal has been subject to a huge social media backlash. Co-founders Elon Musk and David Marcus were among those criticizing the firm's policy, which they believe goes against everything they believe in.

"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," Marcus tweeted on October 8.

https://liquidity-provider.com/app/uploads/2022/10/unnamed-8.png

"Agreed," Musk responded.

https://liquidity-provider.com/app/uploads/2022/10/unnamed-9.png

The leak has enraged many of the critics of the technology giants, who feel they are too powerful and intolerant.

"PayPal is enacting private social credit," tweeted one user.

https://liquidity-provider.com/app/uploads/2022/10/unnamed-10.png

"How does Paypal know that you are spreading misinformation? Are they monitoring our social media accounts? I don't get it," another user commented.

https://liquidity-provider.com/app/uploads/2022/10/unnamed-12.png

'Error'

As PayPal explained to the media, it was an "error."

"An AUP notice recently went out by mistake that contained inaccurate information," a PayPal spokesperson said via email. "There are no fines for misinformation on PayPal, and we never intended to include this language in our policy. We are working on making corrections to our policy pages."

PayPal is forced to take action in order to limit the damage.

"We apologize for any confusion this may have caused," said the spokesperson.

Having this kind of problem damages the reputation of the company. It risks ending up on the anti-Big Tech, which includes companies like Facebook, Instagram, Alphabet's YouTube, and Twitter.

Subscribe Our Newsletter

Intel News: The Corporation Sold These Two Stocks.

Milena

Intel News: The Corporation Sold These Two Stocks.

Intel news: Intel has left its investment in video platform Kaltura and cut its interest in Joby Aviation, which is currently working on a flying automobile.

Companies
U.S. Stocks Surge With Earnings in Focus
U.S. Stocks Surge With Earnings in Focus

The main market indices rose on Tuesday as earnings reports got underway. After falling 39 points on Monday, the Dow Jones Industrial Average closed up 501 points, or 1.5%. The S&P 500 gained 1.6%, while the Nasdaq Composite climbed by 2.2%.

Stocks
Get the ultimate solution: B2BinPay Get the ultimate solution: B2BinPay
Sponsored
Constantine

How to Start a Multi-Asset Brokerage?
In a financial world that never sleeps, traders demand more than just one market — they want everything, everywhere, all at once. Whether it’s crypto at midnight, Forex during economic releases, or indices on Monday mornings, the modern trader is multi-dimensional. If you’re considering entering the brokerage space, offering just one asset type won’t suffice. […]

discover
A Brief and Comprehensive Guide to Spot Trading.

Anna

A Brief and Comprehensive Guide to Spot Trading.

Spot market (SM) is a very active and highly liquid market that trades various financial instruments. A distinctive feature of the spot market is that orders here are executed instantly at the current rate for the time of the trade.

Trading
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Alexander

    What is a Fair Value Gap? A Guide to Trading Market Imbalances

    What is Fair Value Gap

    Vitaliy

    Triangle Patterns in Trading: Mastering Ascending, Descending & Symmetrical Strategies for Maximum Profit

    Triangle Patterns in Trading: Ascending, Descending & Symmetrical Guide

    Alexander

    What Is COTI? Payments, Token & Price Prediction

    What is a COTI coin

    Constantine

    Best Copy Trading Software in 2025

    Best Copy Trading Software in 2025

    Alex

    What Is an AI Agent? The Future of Finance Explained

    AI Agent Explained

    Constantine

    How to Start a Liquidity Provider Business?

    How to Start a Liquidity Provider Business

    Constantine

    How to Start a White Label Brokerage?

    How to start a white label brokerage

    Constantine

    How to Start a Multi-Asset Brokerage?

    How to Start a Multi-Asset Brokerage

    Hazem

    Crypto Ransomware – How They Happen and How to Avoid Them

    Crypto ransomware explained

    Constantine

    Best Web3 Browsers in 2025

    Best Web3 Browsers

    Constantine

    Best DAO Projects in 2025

    Best DAO projects in 2025

    Alexander

    Crypto Nodes That Pay: Your 2025 Guide to Top Passive Income Opportunities in Crypto

    crypto nodes that pay

    Alex

    Pi Network: Scam or Groundbreaking Crypto? The Full Analysis

    Pi Network Explained

    Constantine

    Triple Net Lease: Meaning, Benefits, and Strategies Explained

    Triple Net Lease

    Constantine

    Hanging Man Pattern: How to Identify and Trade It Effectively

    Hanging Man Pattern

    Alex

    5 Infinite Banking Mistakes That Could Cost You Thousands

    Infinite Banking Mistakes to Avoid

    Aleksander

    Solana Firedancer: Solving Solana’s Biggest Problems with a New Engine

    Solana Firedancer explained

    Alexander

    What Is an Interest Coverage Ratio? How to Use This Financial Metric to Evaluate Company Health

    Interest Coverage Ratio Explained

    Hazem

    After-Hours Trading: Can You Trade After Financial Markets Close?

    After-Hours Trading Explained

    Alexander

    How to Scale a Crypto Exchange Business and Stay Competitive

    how to scale crypto exchange business

    Constantine

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Alexander

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Hazem

    Megaphone Pattern​: What Is It? How to Use It In Trading

    Megaphone Pattern​: How to Read & Trade with It

    Constantine

    Top 5 Liquidity Bridge Providers in DeFi

    Top 5 Liquidity Bridge Providers in DeFi
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.