Poland fines PayPal $27.3 million over contractual clauses

Poland fines PayPal: Poland's antitrust and consumer protection authority, UOKiK, has levied a fine of 106.6 million zlotys ($27.3 million) on PayPal Europe for deficiencies in its contractual terms regarding penalties for prohibited activities, UOKiK anunced on Monday.

According to UOKiK, PayPal's contractual clauses lacked clarity and transparency in describing activities that could result in penalties. This ambiguity may have left users uncertain about what actions were prohibited and corresponding consequences imposed by company.

Tomasz Chrostny, head of UOKiK, criticised PayPal's clauses as "general, ambiguous, and incomprehensible," stating that y fail to provide consumers with clear guidance on potential violations and penalties.

He stressed that this lack of clarity grants PayPal excessive discretion in determining prohibited actions and severity of penalties, such as account fund blocks.

In response to fine, PayPal has t yet issued a public comment on matter.

decision by UOKiK is subject to appeal, allowing PayPal opportunity to contest ruling in court if it chooses to do so.

penalty underscores regulatory scrutiny over tech companies' compliance with consumer protection laws in Poland, aiming to ensure transparency and fairness in business practices.

This enforcement action highlights importance of clear and comprehensible contractual terms to protect consumer rights and prevent potential abuse of market power by multinational corporations like PayPal operating in Poland's digital ecomy.

(with Reuters inputs)