politics
PayPal to give up $30M after DOJ accusations of bias in favor of minority-owned businesses
Key takeaways
- The Justice Department said the program was discriminatory while PayPal has denied accusations of wrongdoing.
- Under the Tuesday settlement, PayPal has agreed to create the Small Business Initiative to support companies that are veteran-owned or engaged in farming, manufacturing or technology, per the Justice Department.
- American corporations are on notice: you will face our aggressive enforcement if you use race or national origin to discriminate against qualified Americans, Acting Attorney General Todd Blanche said in a statement.
Why this matters: political developments that affect policy direction and public trust.
In 2020, the company created the Economic Opportunity Fund with intentions to use $530 million to uplift Black- and minority-owned small businesses following the controversial killing of George Floyd, who was strangled by a police officer in Minneapolis, Minn.
The Justice Department said the program was discriminatory while PayPal has denied accusations of wrongdoing.
Under the Tuesday settlement, PayPal has agreed to create the Small Business Initiative to support companies that are veteran-owned or engaged in farming, manufacturing or technology, per the Justice Department.
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