PayPal Updates US Acceptable Use Policy Following Advocacy Group Concerns

PayPal has revised its US acceptable use policy, removing specific language regarding "hate" and "intolerance" that had been criticized by the Alliance Defending Freedom (ADF). The company replaced these terms with a prohibition on transactions involving violence or discriminatory activity based on characteristics protected by law. The ADF, which had previously raised concerns with the Federal Deposit Insurance Corporation regarding potential "debanking" based on political or religious views, has subsequently withdrawn its objection to PayPal’s application for federal deposit insurance.

Jeremy Tedesco, senior counsel at the ADF, characterized the policy update as a positive step toward preventing the exclusion of customers based on their personal beliefs. This change follows an October report from the Office of the Comptroller of the Currency, which noted that broad policies at several major US banks had previously disadvantaged customers for their social or political activities. While the updated language applies to PayPal’s US operations, the company’s UK policy continues to include the original prohibitions against the promotion of hate and intolerance.