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Old 02-26-2012, 12:08 AM   #32
AnnaJMcIntyre
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It is a little more sinister than a business simply having the right to choose who they want to do business with.

Initially, Paypal agreed to do business with a number of sites similar to Smashwords, and it was never a secret that erotica was being sold along with the other ebooks.

Reportedly,Paypal came in fairly quickly and demanded Smashwords comply with their terms, or they would shut them down. They gave their clients very little time to comply – hardly enough to set up a new payment system.

Paypal has a history of claiming client funds in situations like this, and destroying companies.

While I think Smashwords was foolish to set up their business using Paypal, considering Paypal’s history with such shenanigans, there is speculation that the real motivation was not moral outrage, but the fact there is a higher percentage of charge backs with these types of purchases.

Corporate censorship may be legal, but it is just as scary as govt censorship – maybe more so. Already corporations are major players in choosing our presidential candidates. Now they can tell us what we can buy and what we can read.

How would you feel if you had your Paypal account frozen because you purchased a legal ebook from a site initially approved by Paypal, but then Paypal deems the book does not meet its moral standards, so they freeze your account? Maybe you wouldn’t care, but if you were like many people who work online, and are forced to use Paypal to receive payment, it could really hurt you financially. Do you really feel comfortable giving a corporation that much power over your life? (I've read this has happened)

The books they are banning are LEGAL books. Maybe you don’t want to read a story about two adult step-siblings, who end up having sex, but other people might want to, and it is their right. Perhaps it doesn’t touch you now, but what happens when you are no longer able to buy the books you like, because Paypal tells booksellers they can’t sell it, and there are no other payment methods because Paypal is so big, unique, and there isn’t another practical business option.
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