PayPal Holdings Inc. said it has no intention of fining customers for spreading misinformation, after attracting criticism for publishing a new user agreement outlining such a plan.<\/p>\n
The issue gained traction over the weekend after the company published policy updates prohibiting users from using the PayPal service for activities identified by the company as \u201cthe sending, posting, or publication of any messages, content, or materials\u201d promoting misinformation, in an Acceptable Use Policy due to kick in on Nov. 3.<\/p>\n
A penalty of $2,500 could be imposed for each violation, according to the update.<\/p>\n
The notice included \u201cincorrect information,\u201d a spokesperson for PayPal said in a statement to Bloomberg News.<\/p>\n
\u201cPayPal is not fining people for misinformation and this language was never intended to be inserted in our policy.\u201d<\/p>\n
Shares of the company tumbled as much as 5.3% to $85.43, the biggest intraday decline since July 26. They dropped 4.7% to $85.90 at 9:48 a.m. in New York.<\/p>\n
The original notice attracted the ire of former leaders at the company, including David Marcus, the president of PayPal from 2012 to 2014, who called such a move \u201cinsanity\u201d on Twitter.<\/p>\n
Tesla Chief Executive Officer Elon Musk, who co-founded the platform, said he agreed with Marcus in a tweet.<\/p>\n