PayPal to Levy Fines for Gambling, Porn

Found on Reuters on Saturday, 11 September 2004
Browse Various

PayPal, the online payments arm of eBay Inc. (EBAY.O: Quote, Profile, Research), on Friday said it will soon fine people up to $500 for uses related to gambling, adult content or services, and buying or selling prescription drugs from noncertified sellers.

The new policy, which takes effect Sept. 24 and applies to both buyers and sellers, marks the first time PayPal has imposed fines for violations of its use policy, spokeswoman Amanda Pires said.

PayPal processes transactions on the Net and at one time had received almost 10 percent of its revenue from online gambling. But it halted the practice under regulatory pressure after its acquisition by eBay in 2002 and now prohibits the processing of gambling and adult transactions. Now it has decided to enforce that policy with fines.

Isn't that a bit too much power abuse? I doubt people would like it if their bank fines transactions with "unwanted persons or companies". The only thing Paypal has to care about is a secure money transfer; for what it is used is none of their business. I guess it's part of eBay's policies; just like "log all transactions and user data", or "happily tell the feds everything and ignore privacy".