Online payments system giant PayPal has been fined by Poland’s Office of Competition and Consumer Protection (UOKiK) for placing “incomprehensible” contractual clauses that could lead to its customers being fined.
According to UOKiK’s announcement, PayPal’s Europe division was ordered to pay 106.6 million zlotys (around $27 million), but the decision is not final, and the company will have the opportunity to appeal.
UOKiK determined that the language used by PayPal to describe activities that could lead to fines and potential repercussions has not been clear enough for all customers to understand with ease.
“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,” UOKiK said in a statement. “Therefore, PayPal has an unlimited possibility to decide at will whether the user has committed a prohibited act and what penalty they will face for it, which may be, for example, blocking money on the account.”
Responding to the fine, PayPal said that it has been working with UOKiK throughout the watchdog’s investigation and indicated that it will explore the possibility of an appeal.
“PayPal is committed to treating its customers fairly and giving them accurate, easy to understand and transparent information,” PayPal added.