PayPal said to retract policy that would have fined users for misinformation
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PayPal (NASDAQ:PYPL) has reportedly withdrawn a policy that would have seen users fined $2,500 for spreading misinformation, in a move that sparked a social media ablaze. 
The payments giant said the policy update was published "in error," according to a recent report by National Review. 
The swift reversal of the now retracted misinformation clause had driven David Marcus, the former PayPal (PYPL) president, and many others to berate the company via social media.
"Itâs 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," Marcus wrote in a Twitter post over the weekend.
In response to Marcus' tweet, Tesla (TSLA) CEO Elon Musk said he "agreed." 
The updated Acceptable Use Policy that apparently went out in error was scheduled to take effect on November 3. That would have expanded PayPal's (PYPL) list of forbidden activities to include âthe sending, posting, or publication of any messages, content, or materialsâ that âpromotes misinformation,â the report said. 
"An Acceptable Use Policy(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. Weâre sorry for the confusion this has caused," a PayPal spokesperson told Seeking Alpha in an emailed statement. 
PYPL stock dipped 3.5% in premarket trading, adding to its over 65% slump in the past year. 
In June, PayPal adjusted its Goods & Services payments fee structure.