In this case, "customers" being anyone receiving funds via PayPal. And violations to be determined entirely by PayPal. PayPal taking the law into its own hands.
As if people needed another reason to not use PayPal. Whenever I used PayPal in the past, they would lock my account for no reason and I would have to send in documents and wait days for them to unlock it.
Apparently this ability to fine people has been going on for at least a couple years but AUP violation criteria were expanded this year. Now including bans on "obscene" and "objectionable", "unfit for publication" speech, rather than the more commonly-found (and certainly reasonable) prohibitions against funding discrimination. What those words mean is entirely up to PayPal.
More: https://getpayment.com/blog/post/how-paypal-acceptable-use-policy-could-kill-your-business/ https://channelx.world/2020/04/2500-paypal-fine-for-breaking-paypal-acceptable-use-policy https://arstechnica.com/tech-policy/2022/01/paypal-stole-users-money-after-freezing-seizing-funds-lawsuit-alleges/
what does paypal gain from doing this? wouldn't it just drive businesses to switch to competitors like square and stripe?