The Department of Justice secured a $30 million settlement from PayPal over its minority-owned business initiative. The case represents the latest federal action challenging corporate diversity programs.
PayPal agreed to the settlement following DOJ allegations that the company's supplier diversity program violated federal contracting law. The initiative prioritized vendors owned by minorities and women, which regulators claimed discriminated against non-minority business owners.
The settlement requires PayPal to modify its procurement practices and pay $30 million in damages. The company must also implement new supplier selection procedures that comply with federal nondiscrimination standards.
This case follows similar DOJ enforcement actions against other corporations' diversity initiatives. The agency has intensified scrutiny of diversity, equity, and inclusion (DEI) programs across the private sector, arguing they constitute illegal discrimination.
PayPal did not admit wrongdoing as part of the settlement. The company stated it remains committed to diversity while complying with applicable laws.
The enforcement action reflects broader shifts in federal policy toward corporate diversity efforts, with multiple agencies reviewing DEI programs for potential legal violations.
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