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Paypal Forces E-Book Publisher To Censor Erotic Content

hey! writes "On February 18 of this year, global giant payment processor PayPal sent eBook publisher Smashwords an ultimatum: if Smashwords didn't remove all eBooks with certain erotic content from its catalog in the next several days, PayPal would immediately stop handling payments. Smashword's TOS already precluded child pornography, but now PayPal wants them to also censor depictions of consenting, non-related adults acting out incest fantasies. Likewise, fantasy novels in which human characters transform into non-humans are affected if those characters have sex. ZDNet has a summary of the impact of these changes, which would among other things ban Vladmir Nabokov's Lolita. As outrage mounts, finger pointing is in full swing. Smashwords blames PayPal, and PayPal blames the banks it deals with. The crux seems to be that erotica buyers have a higher rate of 'chargebacks' — customers who buy stuff then demand their money back. Fair enough, but is a customer really more likely to return a book because it depicts one kind of fantasy between consenting adults vs. another? Perhaps the problem is just the quality of writing." Note: as you can probably tell from the summary, the linked articles (while factual in nature) discuss subjects that may not be suitable for workplace reading.

26 of 301 comments (clear)

  1. It's not enough... by houstonbofh · · Score: 5, Insightful

    It's not enough that you want unfettered access to remove funds at whim from my bank account. Now you want to decide what I read too? Yet another reason to NOT use Paypal ever...

    1. Re:It's not enough... by Nerdfest · · Score: 4, Funny

      Absolutely. Who are they to determine what is and what's not allowed. Who do they thing they are, Apple?

    2. Re:It's not enough... by GameboyRMH · · Score: 4, Insightful

      Force your control on a man and he'll revolt. Sell your control to a man and he'll purchase, embrace and defend it.

      --
      "When information is power, privacy is freedom" - Jah-Wren Ryel
    3. Re:It's not enough... by Nikker · · Score: 4, Insightful

      I never worked in the same industry but I guess it is a bit obvious this is an issue. Basically what PayPal is saying is this distributor is at a higher risk because of their already documented history of charge backs. OK that I can deal with. Charge a higher premium to the distributor to compensate.

      But for PayPal to be dictating what legal goods can and cannot be sold in a "Free Market" is just so wrong on so many levels that the pure gall of it should be enough to shut the place down. IMO

      --
      A loop, by its nature, continues. If that didn't make sense, start reading this sentence again.
    4. Re:It's not enough... by no-body · · Score: 4, Informative

      PayPal had in it's Acceptable Use Policy since ages forbidding any use of its services for erotics and some other stuff - no weapon "parts"...

      https://cms.paypal.com/us/cgi-bin/?cmd=_render-content&content_ID=ua/AcceptableUse_full&locale.x=en_US

      Nothing new, actually.

      Not trying to defend PayPal, but the underlying reason may be to avoid becoming part of something illegal somewhere. The erotic thing may have other reasons.

      If you are using a functional bank account with any reasonable amount on it with PayPal, your own problem.
      A - open account with bank
      B - use it to open PayPal account
      C - close bank account
      D - always chose payments from Credit Cards @ PayPal

      If you need to use PayPal to receive payments and a bank account - just keep your funds low on that account.

  2. Will this kill Twilight? by forkfail · · Score: 4, Funny

    Likewise, fantasy novels in which human characters transform into non-humans are affected if those characters have sex.

    Please?

    --
    Check your premises.
    1. Re:Will this kill Twilight? by elrous0 · · Score: 4, Insightful

      Not only that, but I heard that a 100-year-old man has sex with a teenage girl in those books.

      --
      SJW: Someone who has run out of real oppression, and has to fake it.
    2. Re:Will this kill Twilight? by medcalf · · Score: 5, Funny

      Ah, Twilight, a sweet romance about the choice between and bestiality and necrophilia.

      --
      -- Two men say they're Jesus. One of them must be wrong. - Dire Straits
  3. Wouldn't that include the Game of Thrones books? by elrous0 · · Score: 5, Insightful

    PayPal wants them to also censor depictions of consenting, non-related adults acting out incest fantasies.

    Someone better tell George Martin not to use Paypal.

    --
    SJW: Someone who has run out of real oppression, and has to fake it.
  4. Bitcoin! by stevegee58 · · Score: 5, Funny

    Everybody switch to bitcoin and put these losers outta business!

  5. Re:Wouldn't that include the Game of Thrones books by forkfail · · Score: 4, Insightful

    And Shakespeare.

    A Midsummer's Night's Dream anyone?

    --
    Check your premises.
  6. Re:More likely to return? YES by houstonbofh · · Score: 5, Funny

    Does anyone really doubt that if you purchased a book that fantasizes incest.. and ANYONE else finds out about it, the first words from your mouth are: "my card was stolen"

    Unless it's your sister who finds out... ;)

  7. It's in Paypal's nature. Just stop using them. by Eldragon · · Score: 5, Interesting

    I deleted my Paypal account six outrages ago.

    Every week I read about how some small business got burned by Paypal. However I have yet to encounter any business willing to drop Paypal and use the competition.

    Petitions and strongly worded blog posts will not change Paypal's behavior. Only thing that matters is lost business.

    1. Re:It's in Paypal's nature. Just stop using them. by GumphMaster · · Score: 4, Informative

      My business no longer uses PayPal and has a Mastercard/Visa merchant account and payment processor instead. PayPal were simply impenetrable when something went wrong with a payment. Refused payment from a good card? I couldn't find out why to help the customer... they'd only talk to the customer. When the customer called they'd just be fobbed off. I'd lose a customer, they wouldn't care. PayPal forces the user to duck and weave to avoid signing up for an account and surrendering unneeded information. PayPal were incapable of forwarding funds in any sort of prompt manner, preferring to pay the old cheque-clearance scam with 5-7 days of "free" money to invest. PayPal is at least partly regulated in Australia, but don't try to get a straight answer out of them about why they don't issue any sort of invoice for tax purposes. Don't get me started on their monopolist ethics.

      I have all the visibility I need with the payment processor I use now, it clears once or twice a day, they provide much better paperwork for tax purposes, and they are actually cheaper.

      --
      Patent litigation: A doctrine of Mutually Assured Destruction... in which everyone seems willing to push the button
  8. Well, there goes ... by PPH · · Score: 5, Insightful

    ... the Bible.

    --
    Have gnu, will travel.
  9. Re:Wouldn't that include the Game of Thrones books by HellKnite · · Score: 5, Insightful

    The Song of Ice and Fire series is fine, because it's not "non-related adults acting out incest fantasies" ... it's actual incest!

  10. They agreed to it when they signed up by ThreeGigs · · Score: 4, Insightful

    There are many things you are not allowed to accept money for on PayPal. Most of them are illegal, but some, like guns and erotica, are not. But I do remember in PayPal's TOS that they did exclude sellers from taking payments for adult material.

    So yeah, don't take PayPal and then complain because YOU didn't follow the rules.

    However I will grant that the definition of what is, and isn't 'erotica', could be subject to wild swings of interpretation. However any merchant with enough volume has their own merchant account and doesn't need PayPal anyhow, so shouldn't need to worry about PP's interpretation.

  11. Only Idiots use PayPal by jafiwam · · Score: 4, Informative

    Until PayPal is regulated by the federal government as a bank properly (which they are, de facto) only an idiot would do business with them.

  12. Re:Truth in advertising by maxwell+demon · · Score: 4, Insightful

    No. The problem is that a company doing payment processing oversteps its authority by making conditions on what those payments may be made for. The only legitimate condition they can put is that the money transaction is not for some illegal purpose. Anything else is simple none of their matter. What's next? Streets which come with restrictions on what books people in the passenger seats may read when driving on it? Garbage collection with the condition that your garbage doesn't contain condoms? Television channels which restrict the type of food you may eat while watching?

    If they think those books are illegal, they should call the police. If not, they should shut up and process the payments, because that's what they get paid for.

    --
    The Tao of math: The numbers you can count are not the real numbers.
  13. Re:The man who fell to Earth? by SJHillman · · Score: 5, Insightful

    What about gods that merely look human having sex with humans? There goes half of the ancient mythologies.

  14. Re:The man who fell to Earth? by Gerzel · · Score: 5, Interesting

    Or gods as animals having sex with humans. (Looking at you Zeus)

  15. As someone in the payments industry... by Firehed · · Score: 5, Interesting

    I hate to defend anything PayPal does - but they're absolutely telling the truth here: their partner banks are complaining (for whatever stupid, arbitrary reason), and they risk having those accounts closed (read: kill the company) if they don't stop providing merchant services for the seller in the article. One of the things that screws you over when you're only pretending to be a bank.

    Don't get me wrong - I'd love to see paypal refuse to comply with their partner banks and get shut down, but we all know that's not going to happen. There's a ton of stupid things they do that are certainly their fault, but this is (based on my own experience with bitchy partner banks) not one of them.

    --
    How are sites slashdotted when nobody reads TFAs?
    1. Re:As someone in the payments industry... by Xacid · · Score: 4, Funny

      Yet I could feasibly buy a horse cock dildo at my local adult store using my credit card from potentially one of these banks...

      Just a paperweight, right? Neighhhh.

    2. Re:As someone in the payments industry... by Ecuador · · Score: 4, Interesting

      One of the things that screws you over when you're only pretending to be a bank.

      Ehh, you got it backwards, Paypal is pretending NOT to be a bank when they are one (they hold customers' funds and they issue lines of credit), to avoid regulation that would prevent them from profiting by screwing their users (most of whom can't help using them due to ebay being a monopoly).

      What is peculiar is that if "poor" paypal got a complaint from a bank that there are many charge-backs that are costing them, they would not threaten to cut them off (they would lose more than paypal), but pass the carge-back cost to them and paypal could pass it to their customer. But paypal never does anything logical or good, they usually do whatever boneheaded move is the easiest for them and they think will not hurt their bottom-line, even if it screws some customers. After all, they have the online auction monopoly which guarantees them customers that have no alternative (the definition of anti-trust violation IMHO), so they never care about sounding bad.

      --
      Violence is the last refuge of the incompetent. Polar Scope Align for iOS
  16. Actually.... by RobCull · · Score: 5, Funny

    Slashdot is not one person, there are many people with many ideas.

    There's just you and one other person (who can type REALLY fast).

  17. Re:The man who fell to Earth? by morari · · Score: 5, Insightful

    On the plus side, it would at least take care of the entire Twilight franchise in one fell swoop. Vampires and werewolves are clearly not human. At best, it'd fall into necrophilia and bestiality.

    --
    "He who can destroy a thing, controls a thing." --Paul Atreides, Dune