Polish Watchdog Fines PayPal $27.3M for Ambiguous Clauses

On Monday, UOKiK announced that PayPal Europe was penalized 106.6 million zlotys ($27.3 million) by Poland’s antitrust and consumer protection agency for failing to disclose its contractual provisions

Users may need to comprehend the precise nature of the prohibited activities, which could result in penalties, as they were described ambiguously, according to UOKiK. The company may need help determining what actions it could take in such instances.

In a statement, Tomasz Christy, the head of UOKiK, stated that consumers need help anticipating which actions may be prohibited or what sanctions the entrepreneur may impose after perusing these provisions.

“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.”

PayPal has the option to appeal to a court, and the decision is not considered definitive, according to UOKiK.

PayPal stated in an email that it is dedicated to providing its customers with transparent, accurate, and user-friendly information.

“We have collaborated closely with UOKiK throughout its investigation and are evaluating today’s announcement.” This decision is not definitive, as UOKiK has stated, and there will be an opportunity to appeal.