Shares of PayPal Holdings Inc. fell almost 6% in midday trading after the payments company said that apparent plans for a misinformation policy were mistakenly published, and that the company doesn’t plan to fine people for misinformation on the platform.
The stock, which has fallen 55% so far this year, was almost 6% lower in midday trading at $85.03 a share.
The move comes after PayPal triggered a wave of backlash over the weekend after its former president, David Marcus, criticized PayPal’s updated Acceptable Use Policy.
The updated policy expanded the company’s list of prohibited activities to include “the sending, posting or publication of any messages, content or materials that, in PayPal’s sole discretion” are harmful or “promote misinformation,” among other things. The policy, which was expected to go into effect on Nov. 3, also would have carried liquidated damages of $2,500 per violation.
“An AUP notice for the U.S. recently went out in error that included incorrect information,” a PayPal spokesperson said. “PayPal is not fining people for misinformation and this language was never intended to be inserted in our policy. We’re sorry for the confusion this has caused.”
PayPal’s explanation of the policy didn’t stop a flurry of commentators, including Tesla Inc. CEO Elon Musk, from weighing in over the weekend. Mr. Musk said on Twitter, “Agreed,” in response to Mr. Marcus’ Saturday tweet, which read, “A private company now gets to decide to take your money if you say something they disagree with. Insanity.”