PayPal Europe has been fined $27.3 million by Poland’s competition authority for failing to adequately inform consumers in contractual terms about activities that would subject them to fines, the Office for Competition and Consumer Protection (UOKiK) said on Monday (July 15).
UOKiK claimed that activities that could lead to fines from PayPal were described in an unclear manner. This could lead to users not understanding what is and is not allowed on the platform.
“PayPal clauses are general, ambiguous and incomprehensible,” Tomasz Chrostny, the head of UOKiK, said in a statement. “Reading these provisions, a consumer cannot predict which of his actions may be considered prohibited, or what sanctions may be imposed on him by the entrepreneur.”
“PayPal thus has unlimited ability to decide at its own discretion whether the user has committed a prohibited act and what punishment he will receive for it, which may include, for example, blocking the money in the account,” Chrostny said.
The decision is not yet final and PayPal has the option to appeal to the court, UOKiK said.
PayPal said it had worked closely with UOKiK during the investigation and was reviewing the announcement.
In June, PayPal announced one of Walmart’s top technology executives as new CTO, to lead the company’s AI push.
Srini Venkatesan will lead PayPal’s technology, product development and information security.
PayPal CEO Alex Chriss called 2024 a “transition year” for the company.
“PayPal Europe Fined $27.3 Million Over Unclear Consumer Contracts By Polish Regulator” was originally created and posted by Pronunciationa brand of GlobalData.
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