Yesterday, Paypal released a new user policy that would see the fintech fine users $2,500 for spreading “misinformation”. As expected this caused quite a stir on social media platforms leading to Paypal backtracking on the decision.

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According to the policy, after November 3, anyone including Africans who posts or publishes information or content to “promote misinformation” would have been subject to the penalty.

This would then attract a lot of attention on social media with ‘Avoid Paypal’ trending in some parts of the world.

Also Read: 10 Best PayPal Alternatives in Kenya

Following the backlash, the company said: “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,” it said.

The payments services corporation had planned to update its user agreement with a new clause added that fights against so-called “misinformation.” A new update added to the restricted activity section of Paypal’s user agreement shows that people who post or publish hate speech or misinformation “may subject you to damages, including liquidated damages of $2,500.00 U.S. dollars per violation, which may be debited directly from your Paypal account.”

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“You may not use the PayPal service for activities that involve the sending, posting, or publication of any messages, content, or materials that, in PayPal’s sole discretion promote misinformation,” read the notification.

The Paypal news caught the attention of a lot of people including Tesla executive Elon Musk. When an individual wrote that the new ToS news was “worrying” and “that’s why we need the X platform more than ever,” Musk responded “100%.

“And who decides what “misinformation” is? Why, Paypal, of course. I am sure they will be fair. Twitter will restrict your account if they don’t like what you post. Paypal has authorized [itself] to assess monetary fines for bad behavior. Welcome to the Soviet Union.” Another person wrote


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Nigel Jr.
As a tech enthusiast and expert, Nigel Jr. is dedicated to providing in-depth and insightful content on all things technology. With a background in online journalism, product reviewing, and tech creation, Nigel has become a trusted source for all things tech.

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