PayPal closes Free Speech Union and Daily Sceptic accounts; controversial '$2,500 misinformation fine' policy withdrawn
On September 20, 2022, PayPal permanently limited accounts belonging to the UK-based Free Speech Union, the news site Daily Sceptic, and Toby Young's personal account, as well as accounts for the U.S. nonprofit Gays Against Groomers. Following backlash and political pressure from UK MPs, PayPal reinstated the Free Speech Union and Daily Sceptic on September 27. In early October 2022 a separately archived update to PayPal's Acceptable Use Policy included a provision authorizing fines of up to $2,500 per violation for promoting 'misinformation'; following further public backlash PayPal said the language had been included 'in error' and withdrew it.
Dates: Account closures September 20, 2022; UK reinstatements approximately September 27, 2022; AUP 'misinformation fine' discovered and withdrawn October 8–10, 2022; House Financial Services / Energy and Commerce letter to PayPal CEO October 18, 2022. Parties: Free Speech Union (UK); Daily Sceptic; Toby Young; Gays Against Groomers; PayPal; Venmo; UK Members of Parliament; U.S. House committees. What happened: PayPal sent form notices to multiple organizations stating accounts had been permanently limited. UK political pressure produced reinstatements for Free Speech Union and Daily Sceptic. Gays Against Groomers' accounts were not reinstated. Separately, an internet-archived snapshot showed PayPal's AUP had been quietly updated to allow $2,500-per-violation fines for 'misinformation'; PayPal then said the language was an error and removed it. The U.S. House Financial Services and Energy and Commerce committees demanded an explanation from PayPal CEO Dan Schulman. PayPal's stated reasons: Generic User Agreement violations for the closures; 'inclusion in error' for the misinformation-fine clause. Affected parties' allegations: Ideological and viewpoint-based targeting; PayPal acting as a political content regulator; the AUP wording appeared deliberate, not accidental. Outcome: UK reinstatements without acknowledgment of error. Gays Against Groomers remained banned. AUP fine language withdrawn. Congressional letter publicly issued; PayPal's full response to Congress not made public.