End Financial Discrimination at PayPal

PayPal’s poor transparency reporting veils the contradiction between PayPal’s human rights policy and account suspensions, and other potential violations of free speech, all of which pose a significant legal, reputational and financial risk to PayPal and its shareholders.

End Financial Discrimination at PayPal

PayPal’s poor transparency reporting veils the contradiction between PayPal’s human rights policy and account suspensions, and other potential violations of free speech, all of which pose a significant legal, reputational and financial risk to PayPal and its shareholders.

The Latest: While this proposal was not eligible for a vote, we are pleased that these pertinent issues were brought to the attention of PayPal's shareholders.

The Latest: While this proposal was not eligible for a vote, we are pleased that these pertinent issues were brought to the attention of PayPal's shareholders.

You can find the proposal as Proposal 7 on PayPal's 2023 proxy statement, here.

Why It Matters:

In June 2021, the American Civil Liberties Union (ACLU) launched a campaign calling on PayPal to provide nondiscriminatory financial services to all users. This is important because PayPal has a history of closing individual and business accounts without giving
meaningful notice about the particular Terms of Services provision that was violated. ACLU contends that accountability on human rights, civil liberties, and sound technology policy necessitates that PayPal provide transparency to its users, enabling them to appeal PayPal’s decision to close their account in a timely and efficient manner.


There have also been reports that PayPal blocks accounts of sex workers, which has been shown to disproportionately harm Black, Brown and trans communities. Additionally, PayPal has routinely targeted users for speech protected by the First Amendment. The Company has stalled efforts to provide bail support to protestors, froze the accounts
of News Media Canada for a payment to submit an article about Syrian refugees for an award and terminated service to a user for using an open-source software that enables anonymous communication. Investors have reason to be concerned because, as the Electronic Frontier Foundation notes, few companies dominate the market for online payment processing.

PayPal wields tremendous power in the industry and controls the speech environment by turning off financial faucet for users who express disfavored views or discuss controversial topics. Consequently, this leaves individuals who have been blacklisted by PayPal in financially precarious situations since PayPal is one of the largest payment platforms in the world with 325 million active users. As such, any arguments that those dissatisfied with PayPal’s terms and conditions should seek alternative payment methods are not convincing.

Further, PayPal’s 2021 Global Impact Report failed to include information relating to account suspension or actions that may hinder free speech, undermining its commitment to “build a digital economy that powers a more inclusive and resilient world”. Indeed, this
emphasises the contradiction between PayPal’s human rights policy, account suspensions and other potential violations of free speech.

By not being transparent with its users, PayPal is missing out on the opportunity to service these users, which is discriminatory, but also hinders PayPal’s ability to acquire a greater market share and generate revenue.

how activism Investment works

how activism Investment works

What is shareholder activism?

Shareholder activism is when shareholders use their influence as owners of a company to effectuate change within the organisation.

What is Tulipshare?

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How does Tulipshare improve sustainability through investing?

Tulipshare addresses issues pertaining to climate change, human rights, racial and gender equity, political spending and operational transparency within some of America’s biggest publicly traded companies - issues that if left unaddressed could expose a company and its investors to significant legal, reputational and financial risks.

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No Investment Advice:
The information provided on this website is for informational purposes only and should not be considered as investment advice. We do not provide personalised investment recommendations or endorse any particular trading strategy. Any decision to engage in trading activities is solely at your own risk. You are responsible for conducting your own research and making informed investment decisions.

Tulipshare Ltd. Registered Office: 64 Nile Street, International House, London N1 7SR. | Registered in England & Wales. Company No: 12870288.
Your privacy is important to us. Please read our Privacy Policy to understand how we collect, use and share information about you.

No Investment Advice:
The information provided on this website is for informational purposes only and should not be considered as investment advice. We do not provide personalised investment recommendations or endorse any particular trading strategy. Any decision to engage in trading activities is solely at your own risk. You are responsible for conducting your own research and making informed investment decisions.