PayPal does not intend to fine users for using its platform to spread misinformation. The company claims that an early policy update notice circulated suggesting such a change was sent in error.

Reports recently surfaced online that PayPal had updated its Acceptable Use Policy (AUP) and expanded the list of prohibited activities. The new policy was set to go into effect on November 3. The list of prohibited activities now includes sending, posting or publishing any messages, content or materials that promote misinformation or pose a risk to the safety or well-being of the user.

Violators of this clause faced a fine of $2500, which could be deducted from their PayPal account.

The news caused quite a stir online.

Former PayPal president David Marcus wrote on Twitter:

Elon Musk, who often speaks out about big companies trying to censor them, also agreed with him:

Several hundred Twitter users, in turn, said they plan to delete their PayPal accounts. Entrepreneur David Sacks also advised people withdrawing their money from the service.

The negative reaction of celebrities and ordinary users apparently led to the fact that PayPal rejected the forthcoming changes and said that the information about them was a mistake. Company representatives wrote a letter to the editors of National Review stating the following:

"An AUP notice recently went out in error that included incorrect information. PayPal is not fining people for misinformation and this language was never intended to be inserted in our policy. Our teams are working to correct our policy pages. We’re sorry for the confusion this has caused." 

But the harm, as they say, has already been done. #BankruptPayPal remains one of the trending tags on Twitter, and users were understandably skeptical of the company's message.