Go Woke And Go Broke

Paypal learns the hard way that Social Credit systems backfire in free nations

Yesterday, I promised to send out updates on companies and individuals behaving in desperate and stupid ways. The first one I will report on is PayPal.

This past weekend, Paypal updated its AUP (Acceptable User Policy) to state that any of their customers caught spreading ‘misinformation’ or ‘disinformation’ would have $2,500 US dedicated from their Paypal accounts. Should they not have enough money in their account, then Paypal would take it from their cheque or savings account.

The terms misinformation and disinformation were not defined and, one would think, are totally dependent upon some faceless, nameless desk jockey whose job it is to determine what you are able to say, do or think online or in your business. This is very much like the social credit system currently being tested in Communist China and should be a matter or concern for anyone who is still capable of independent thought.

Two days ago, Twitter and other social media outlets exploded with outrage as people stated that with the advent of this insane and anti-free speech policy, they were going to be closing their Paypal accounts and withdrawing their funds immediately.

David Marcus, former CEO of Paypal, sent the tweet above criticising the company he used to run for inserting what amounts to a social credit system between Paypal’s customers and their own funds.

Within a very short time, the righteous outrage of Paypal’s customer base caused what amounted to a run on the company’s funds, with many thousands of people closing their accounts in protest. Shares in the publicly-traded company went from a high for the year of $273 to close at just over $84.00 and the signs point to further losses as Paypal scrambles to cover the cost of funding the many cash transfers currently awaiting fulfilment.

In a move that would only fool the most credulous, Paypal backtracked on this new policy and claimed that it had been issued “in error” and was “a mistake”. Indeed, one can only imagine that hundreds of employees, dozens of lawyers and the entire board had somehow slipped in typing up this policy and then - shock, horror! - pushing the send button when that was never intended. Or, perhaps not intended quite so soon. You see, the policy itself was dated November 3rd, 2022.

Paypal has now withdrawn this policy and is no-doubt hoping that people’s memories will be shorter than their anger. Will that be the case? Only time will tell.

Are you going to close your Paypal account as a result of this move? I’d love to hear your thoughts on this.