PayPal fined 106.6M zlotys by Polish agency for unclear clauses

Updates with PayPal’s response

PayPal Europe was slapped with a fine of 106.6 million zlotys by Poland’s consumer protection agency, after the online payment service firm did not explain to its customers the contractual clauses for which they could be fined.

The UOKiK questioned the provisions under the “PayPal User Agreement”.

According to the President of UOKiK, the prohibited activities could lead to a situation in which the consumer was unaware of what action might be considered prohibited by the company, and were unable to foresee the sanctions that might be applied to them.

“For a consumer, using PayPal’s services under the disputed clauses is unpredictable. PayPal’s clauses are generic, ambiguous and incomprehensible,” UOKiK President Tomasz Chróstny said.

“PayPal has unlimited discretion to decide whether a user has committed a prohibited act and what punishment he or she will face for it, which could be, for example, the blocking of money in the account,” Chróstny added.

The decision is, however, not final, and the company has the option of filing an appeal with a court, UOKiK said.

“PayPal is committed to treating its customers fairly and giving them accurate, easy to understand and transparent information. 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,” a PayPal spokesperson said.