PayPal, because it's not a bank, because ……… internet, can do all sorts of skeevy and corrupt things, as well as save the cost of compliance with consumer protections.
Case in point, they permanently shut down the account of Consortium News, a left wing news site, with no warning nor any explanation, and threatened to expropriate their account after holding onto it for 6 months.
Well, it appears that PayPal decided that, "Permanent," means, until a sh%$ storm blows up and we reverse ourselves, because today, PayPal caved:
PayPal has reversed its decision to withhold Consortium News‘ funds after a backlash from social media, news outlets and CN donors.
PayPal sent Consortium News an email on Tuesday night saying: “Your PayPal funds are now eligible for withdrawal.” CN immediately withdrew the funds. PayPal gave no reasons for its reversal, as it had given no reasons for its initial action. The account remains shut down, though it appears no longer permanently, as PayPal is asking CN to take steps to restore it without saying what those steps are.
PayPal initially said it had slapped a “permanent limitation” on Consortium News, adding explicitly: “You can’t use PayPal anymore. … We noticed activity in your account that’s inconsistent with our User Agreement and we no longer offer you PayPal services. … Because of potential risk exposure, we’ve permanently limited your account. You’ll no longer be able to use the account for any transactions.”
Among “restricted activities” in the User Agreement is a ban on providing “false, inaccurate or misleading information” to PayPal, other PayPal customers “or third parties.” Given the political climate it is reasonable to conclude that PayPal was reacting to Consortium News’ coverage of the war in Ukraine, which is not in line with the dominant narrative that is being increasingly enforced. If true, PayPal was allegedly seeking to limit Consortium News’ free speech by depriving it of one of its main vehicles for funding.
A PayPal customer service agent had told CN that its funds could be kept for six months until a determination was made about what to do with them. “If there was a violation .. it is possible” CN‘s balance of $9,348.14 could be kept as “damages” to PayPal. That would mean awarding itself damages in a completely secret process.
PayPal apparently has also lifted the “permanent limitation” on CN‘s account. According to its User Agreement, PayPal says there are no steps that can be taken to reverse the permanent ban. (Click to enlarge).
But in the Tuesday night email PayPal said there were now steps Consortium News could take. “Access to your account will remain limited until you perform the steps required to lift the limitation.” However, it failed to specify what those steps are and still hasn’t identified what violations were committed to bring the ban in the first place.
………
Independent media reacted too, with an article by Matt Taibbi on Substack, one by Jacobin magazine and a report on DemocracyNow! The story also hit the mainstream in this segment on The Hills‘ show Rising, which also discuss MintPress News, which was also shut down, having its funding restored as well.
If a bank did this, they would have to provide documentation, and a prompt resolution, or they would risk lawsuits and regulatory matters, but because PayPal is not a bank, a legal fiction much the independent contractor legal fictgion served up by Uber and its ilk, they don't care.
They don't have to.
They are PayPal.
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