PayPal fined $27.3 million by Polish regulator for ambiguous clauses

The Polish Office of Competition and Consumer Protection has imposed a fine of PLN 106.6 million (USD 27.3 million) on PayPal Europe for failing to explain to consumers in contract clauses what actions may result in a fine being imposed on them, the Office of Competition and Consumer Protection announced on Monday.

The Office of Competition and Consumer Protection stated that the prohibited activities that may result in penalties were described in an unclear manner, and users may not understand what exactly is prohibited and what actions the company may take in such cases.

“PayPal’s clauses are general, ambiguous and incomprehensible. When reading these provisions, the consumer is unable to predict which of their actions may be considered prohibited or what sanctions the entrepreneur may impose on them,” said Tomasz Chrostny, president of the Office of Competition and Consumer Protection, in a statement.

“PayPal therefore has the unrestricted ability to decide at its own discretion whether a user has committed a prohibited act and what penalty he will suffer for it, which may consist, for example, in blocking money in the account.”

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The decision is not final and PayPal may appeal to the court, the Office of Competition and Consumer Protection (UOKiK) informed.

“PayPal is committed to treating its customers fairly and providing them with accurate, easy-to-understand and transparent information,” the company said in an emailed comment.

“We have been working closely with UOKiK throughout the investigation and are reviewing today’s announcement. As UOKiK states, this decision is not final and there will be an opportunity to appeal,” it added.