WARSAW (Reuters) – Poland’s antitrust and consumer watchdog said on Monday it had fined PayPal Europe 106.6 million zlotys ($27.3 million) for failing to make clear in contractual terms to consumers which activities could result in fines.
UOKiK said that prohibited activities that could result in penalties were described in an unclear manner and users may not understand exactly what is not allowed and what action the company can take in such cases.
“PayPal’s terms are general, vague and incomprehensible. Reading them, the consumer cannot predict which of his actions may be considered prohibited, or what sanctions the entrepreneur may impose on him,” said Tomasz Krostny, head of the Consumers Union of Ukraine, in a statement.
“Therefore, PayPal has the unlimited possibility to decide at will whether the user has committed a prohibited act and what penalty he will face because of it, which may be, for example, blocking of funds in the account.”
UOKiK said the decision is not final, and PayPal has the option to appeal to the court.
“PayPal is committed to treating its customers fairly and providing them with accurate, easy-to-understand and transparent information,” the company said in an emailed comment.
“We have worked closely with UOKiK throughout the investigation, and are reviewing today’s announcement. As UOKiK stated, this decision is not final and there will be an opportunity to appeal,” the company added.
(1 dollar = 3.9055 zloty)
