PayPal users have been sent into a frenzy after the company said it would fine users $2,500 (roughly £2,261.24) for spreading misinformation. The announcement came as part of a new policy due to come into effect next month, but the firm has now U-turned following a backlash.
Google searches for the phrase "delete PayPal" soared by 1,392 per cent following the news, according to analysis by Financial World, as reported by the Mirror. Searches for "cancel PayPal" also spiked, as shares in the firm fell by nearly six per cent.
PayPal had been planning to introduce its new policy on November 3, according to several reports. A spokesperson for the company said: "PayPal is not fining people for misinformation and this language was never intended to be inserted in our policy."
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A spokesperson for Financial World commented: "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."
PayPal's former president David Marcus also hit out at the plans, taking to Twitter to criticise the policy. He wrote: "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."
Billionaire Elon Musk - who co-founded PayPal before selling his shares to eBay in 2002 for $175.8 - said he "agreed" with Mr Marcus.
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