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Home NEWS Economy

PayPal Slapped with Record Fine in Poland Over Unfair Terms

Regulators cite vague clauses, consumer uncertainty in Landmark Decision.

Poland-24.com Team by Poland-24.com Team
15 July 2024
in BREAKING NEWS, NEWS
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On Monday, Poland’s Office of Competition and Consumer Protection fined PayPal, a provider of online payment services, 106 million Polish zlotys ($ 27 mln) for what it deemed as unfair contract clauses. According to the UOKiK president, the clauses in PayPal’s user agreement were described as vague and ambiguous. Consumers, when reading these provisions, could not predict which actions might be considered prohibited.

In response to the decision, PayPal stated it is evaluating the UOKiK’s findings. The company, known for facilitating online transactions globally and serving as an electronic wallet integrated with bank accounts, was found to have employed unfair clauses in its user agreement. The regulatory body highlighted concerns over clauses detailing “34 prohibited actions” for users and the potential sanctions, including penalizing users for attempting to use a blocked account.

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UOKiK emphasized that terms in regulations or agreements must be clear and understandable to consumers. The authority added that abusive clauses should be treated as if they were not included in contracts.

“This marks an unprecedented breach. For consumers, using PayPal services under the disputed clauses was unpredictable,” said UOKiK President Tomasz Chróstny. “PayPal’s clauses are general, ambiguous, and unclear. Consumers reading these provisions cannot foresee which of their actions may be deemed prohibited, nor can they anticipate the penalties the company may impose.”

The decision is not final, and PayPal has the option to appeal to the courts, as stated by UOKiK. PayPal responded by stating it is committed to treating its customers fairly and providing them with accurate, fully understandable, and transparent information. The company acknowledged the decision’s publication and noted the possibility of appealing the ruling.

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