PayPal says policy to fine customers for 'misinformation' was an 'error'

Oct 10 (Reuters) - PayPal Holdings Inc (PYPL.O) said on Monday it will not fine users for misinformation and an earlier policy update that said customers could have to pay $2,500 in damages was sent in error.

Shares of the San Jose, California-based company were down nearly 6% after the update, which PayPal said "included incorrect information", sparked intense backlash on social media over the weekend.

"PayPal is not fining people for misinformation and this language was never intended to be inserted in our policy. We're sorry for the confusion this has caused," a spokesperson for the company said.