PayPal has dropped the words “hate” and “intolerance” from its rules on banned transactions after the legal advocacy group Alliance Defending Freedom objected to the company’s policies before a federal banking regulator.
The payment company’s old rule barred transactions involving “the promotion of hate, violence, racial or other forms of intolerance that is discriminatory,” ADF said in a statement. The new wording limits the ban to discrimination against traits “protected under applicable law.”
PayPal will also narrow its rule against “misleading information.” Under the change, the rule will cover only messages about PayPal transactions. Customer speech on other subjects falls outside the narrower rule.
PayPal updated its Acceptable Use Policy this week, after outlining the changes in a Sept. 15 letter to the FDIC.
The company also posted a new statement on its frequently asked questions page saying it bases account decisions “on account activity, not a customer’s religion, race, disability, gender, sexual orientation, national origin, political affiliation, or any characteristic protected under applicable law.”
PayPal agrees to change its policy on ‘hate’ and ‘intolerance’ | Business
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