22 Rights Groups Tell PayPal and Venmo to Shape Up Policies on Account Closures

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Companies Have History of Unfair Crackdowns on First-Amendment Protected Activities

San Francisco – Nearly two dozen rights groups, including the Electronic Frontier Foundation (EFF), have joined together to tell PayPal and its subsidiary Venmo to shape up its policies on account freezes and closures, as its opaque practices are interfering with payment systems connected to many First-Amendment protected activities.

“Companies like PayPal and Venmo have hundreds of millions of users. Access to their services can directly impact an individual, company, or nonprofit’s ability to survive and thrive in our digital world,” said EFF International Director of Freedom of Expression Jillian York. “But while companies like Facebook and YouTube have faced substantial scrutiny for their history of account closures, financial companies like PayPal have often flown under the radar. Now, the human rights community is sending a clear message that it’s time to change.”

The coalition sent a letter to PayPal and Venmo today, voicing particular concern about account closures that seem to have been used to pressure or single-out websites that host controversial—but legal—content. PayPay shut down the account of online bookseller Smashwords over concern about erotic fiction, and also refused to process payments to the whistleblower website Wikileaks. Last year, Venmo was sued for targeting payments associated with Islam or Arab nationalities or ethnicity, and there are also numerous examples of sex worker advocates facing account closures.

Today’s letter calls on PayPal and Venmo to provide more transparency and accountability around its policies and practices for account freezes and closures, including publishing regular transparency reports, providing meaningful notice to users, and offering a timely and meaningful appeals process.  These recommendations are in alignment with the Santa Clara Principles on Transparency and Accountability in Content Moderation, a set of principles developed by free expression advocates and schola

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