Poland Fines PayPal Europe $27.3 Million for Ambiguous User Agreements

Poland’s Office of Competition and Consumer Protection (UOKiK) has levied a fine of 106.6 million zlotys ($27.3 million) on PayPal Europe. The penalty was imposed due to the company’s failure to clearly outline activities that could result in penalties within their contractual clauses, UOKiK announced on Monday.

UOKiK highlighted that PayPal’s terms of service contained descriptions of prohibited activities that were presented in a vague and unclear manner. This ambiguity, according to the watchdog, left users uncertain about what actions were forbidden and the potential consequences of such actions.

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“PayPal clauses are general, ambiguous and incomprehensible. When reading these provisions, a consumer cannot predict which of their actions may be considered prohibited, or what sanctions may be imposed on them by the entrepreneur,” stated Tomasz Chrostny, head of UOKiK. He emphasized that this gave PayPal virtually unlimited discretion to determine whether a user had violated terms and what penalties to impose, which could include actions as severe as freezing funds in the user’s account.

The decision by UOKiK is not final, and PayPal retains the right to appeal the ruling in court. Responding to the announcement, PayPal reiterated its commitment to fairness and transparency in its dealings with customers.

“PayPal is committed to treating its customers fairly and giving them accurate, easy to understand, and transparent information,” the company said in an e-mailed statement. “We have been working closely with UOKiK throughout its investigation, and we are reviewing today’s announcement. As UOKiK states, this decision is not final and there will be an opportunity to appeal.”

Source: Reuters