A woman uses the PayPall app on her phone (Image: PA)
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PayPal users have been scrambling to delete their accounts after being warned they could each be fined £2,200.
The online retail payment giant had introduced a new policy aimed to stop the spread of misinformation.
But it has today made a swift U-turn following a huge backlash.
Google searches for the phrase “delete PayPal” had skyrocketed by 1,392 per cent, Mirror reports.
Since then though, a spokesperson for PayPal said: “PayPal is not fining people for misinformation and this language was never intended to be inserted in our policy.”
The new policy was reportedly going to come into force on November 3. Shares in the company fell nearly six per cent after the update.
Analysis by Financial World found that worldwide Google searches for the phrase “delete PayPal” and “cancel PayPal” saw massive spikes following the news.
A spokesperson for Financial World commented on the findings: “PayPal has received backlash from their announcement, which was quickly retracted.
“Many posts can be seen highlighting the issue that PayPal announced they could deduct $2,500 straight from your account for misinformation, with hundreds of people suggesting closing their accounts to avoid this penalty.
“Famous faces, including Elon Musk, have been in agreement that the new policy is misguided.”
While the spike in Google searches meant PayPal users were keen to cease using the service altogether, some people took to social media to voice their criticism of the new policy.
Paypal’s former president David Marcus took to Twitter to criticise the policy.
He said: “It’s hard for me to openly criticize a company I used to love and gave so much to. But PayPal’s new AUP goes against everything I believe in.
“A private company now gets to decide to take your money if you say something they disagree with. Insanity.”
A Paypal spokesperson told Gizmodo: “An AUP notice for the U.S. 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. We’re sorry for the confusion this has caused.”
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