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DOJ settles with PayPal for $30M over minority business program

By PulseAugur Editorial · [2 sources] ·

PayPal has agreed to a $30 million settlement with the Department of Justice over its 2020 Economic Opportunity Fund, which aimed to invest in Black and minority-owned businesses. The DOJ alleged the program violated the Equal Credit Opportunity Act by discriminating based on race. As part of the settlement, PayPal will launch a new Small Business Initiative, waiving processing fees for $1 billion in transactions for businesses in sectors like technology and manufacturing, while admitting no wrongdoing. AI

IMPACT This settlement highlights a trend of increased regulatory scrutiny on diversity initiatives in corporate America, potentially impacting how companies structure and communicate their DEI programs.

RANK_REASON Regulatory action against a major company regarding DEI programs. [lever_c_demoted from significant: ic=2 ai=0.4]

Read on Engadget →

AI-generated summary · Google Gemini · from 2 sources. How we write summaries →

DOJ settles with PayPal for $30M over minority business program

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Research
Regulatory action against a major company regarding DEI programs. [lever_c_demoted from significant: ic=2 ai=0.4]
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2 independent sources
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policy, other
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142 days old
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COVERAGE [2]

  1. Engadget TIER_1 English(EN) · [email protected] (Anna Washenko) ·

    DOJ extracts $30m settlement from PayPal over minority-owned business program

    The federal retaliation against corporate DEI efforts marches on.

  2. Fortune TIER_1 English(EN) · Kristen Parisi, HR Brew ·

    PayPal reaches $30 million DOJ settlement over 2020 program for Black-owned businesses

    The agreement comes just one month after IBM agreed to pay $17 million in damages to the DOJ over its DEI programming.

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