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At Your Own Risk: PayPals Bans On Free Speech Is Censorship, Could Wreck Your Business In 24 Hours

If the digital police aka PayPal don’t like your business or what you’ve said on social media, they can ban you instantly

Fox News

(Fox News) PayPal’s purported content-based bans raise additional concerns about Big Tech’s control over free speech, a digital privacy advocate told Fox News.

“For a decade I’ve been watching content moderation at the platform level go terribly awry,” Corynne McSherry, the legal director at the Electronic Frontier Foundation, a digital rights group, told Fox News. “Now, more and more we’re watching the same problems … in other parts of the internet stack.”


“It’s not just PayPal,” McSherry continued. “Several of the major payment processors have been playing an increasing role in policing online speech.”

Numerous users have said PayPal temporarily suspended their accounts over their content, resulting in lost income, McSherry told Fox News. Critics have also accused PayPal of censoring conservative-leaning organizations without reason and scrutinized the tech company for working with the Southern Poverty Law Center in 2019.

PayPal, for example, suspended two U.K.-based organizations — the Free Speech Union, a free speech advocacy group, and The Daily Sceptic, a news platform started to publish stories critical of the COVID-19 lockdowns — in September 2022, which removed their access to funding. The accounts were reinstated two weeks later, but the founder and director of the organizations, Toby Young, told The Telegraph that “PayPal’s software was embedded in all our payment systems, so the sudden closure of our accounts was an existential threat.”

“When they make decisions about whether they’re going to process payments for you, that can mean that your business is going under,” McSherry said. “That can mean that you will not survive because there’s no money coming in.”

Young’s personal account was also suspended and then reinstated. PayPal said the accounts violated its user policy but didn’t provide detail, and the Free Speech Union said it received no prior warnings. The payment platform has also said the First Amendment allows it to restrict accounts for any reason at any time.

PayPal co-founder Peter Thiel told The Free Press in December “if the online forms of your money are frozen, that’s like destroying people economically, limiting their ability to exercise their political voice.”

And if businesses get removed during fundraising months, it could put them at risk of losing huge sums of cash, McSherry said.

“That could be life or death” for your business, McSherry told Fox News.

In a statement, PayPal told Fox New’s it’s “dedicated to providing safe and affordable financial services to people of all backgrounds with a diversity of views. We also take very seriously our responsibility to protect buyers and sellers, while working to ensure that our services are not used for fraudulent or illicit activities.”

The Electronic Frontier Foundation and other civil liberties groups wrote a letter to PayPal and Venmo in June 2021 asking for clarity behind their banning decisions but the coalition never received a response. It’s unclear how many accounts have been suspended or banned.

Gays Against Groomers, a coalition of LGBTQ members who oppose a focus on gender identity and sexual orientation in children’s education, for example, said PayPal and Venmo shut down their accounts for “violating” user agreements. But the platforms, the group said, didn’t detail what the infractions were, and its accounts were later reinstated.

PayPal co-founder Peter Thiel spoke out in opposition of the payment platform's banning decisions. 
PayPal co-founder Peter Thiel spoke out in opposition of the payment platform’s banning decisions.  (AP Photo/Jeff Chiu)

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