Top financial regulator concerned about Big Tech limiting free speech after PayPal debacle

WASHINGTON (TND) — U.S. Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra said during an appearance on CNBC Wednesday that his agency ordered most of the larger Big Tech and Fin Tech firms to provide information on how they are making decisions about who they kick off their platforms.

Chopra's comments came after PayPal was slammed for posting a policy update that would have fined users $2,500 for "promoting misinformation." Following public outrage, PayPal claimed the update was made “in error.”

READ MORE: "PayPal now says new policy on misinformation was sent 'in error'"

"I've never actually heard of a payment system thinking that it could fine someone for legal expression that their users are making," Chopra said on CNBC's "Squawk Box" Wednesday. "We have ordered all the Big Tech -- most of the major Big Tech firms and payment companies to provide us with information about how are they making decisions about who they kick off their platforms, but we also need to look into whether they believe they can be fining users for legal activity."

Free speech advocates have long decried PayPal for alleged censorship. Conservatives called for a boycott of PayPal in 2019 after it was revealed the company partnered with the far-left Southern Poverty Law Center (SPLC) to assist in identifying accounts to ban from its services, according to Fox News.

READ MORE: "Right-leaning orgs axed from PayPal put spotlight on corporate censorship"

Before PayPal said its latest policy update was made erroneously, South Carolina GOP Sen. Tim Scott said his office would be "looking into the validity of PayPal's new policy" and take "any necessary action" to put a stop to such "corporate activism."

"It’s hard for me to openly criticize a company I used to love and gave so much to. But PayPal’s new [policy] goes against everything I believe in," tweeted former president of PayPal David Marcus. "A private company now gets to decide to take your money if you say something they disagree with. Insanity."