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Online payment services company PayPal Europe has been fined 106.6 million zlotys by Poland’s consumer protection authority for failing to explain contract terms that could result in fines to customers.
UOKiK questioned the following provisions: “PayPal User Agreement”.
According to the UOKiK president, prohibited practices can lead to situations where consumers are unable to recognise actions considered prohibited by companies and are therefore unable to foresee the sanctions that may be applied to them.
“For consumers, using PayPal’s services under the disputed terms is unpredictable. PayPal’s terms are general, vague and difficult to understand,” said UOKiK chairman Tomasz Krostoni.
“PayPal has unlimited discretion to determine whether a user has committed prohibited conduct and what penalties they may face for that conduct, including, for example, freezing any funds in your account,” Christony added.
However, UOKiK said the decision was not final and the company had the option to appeal to court.
