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 announced 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 the corresponding consequences imposed by the company.

Tomasz Chrostny, head of UOKiK, criticised PayPal's clauses as "general, ambiguous, and incomprehensible," stating that they 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 the severity of penalties, such as account fund blockages.

In response to the fine, PayPal has not yet issued a public comment on the matter.

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

The 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 the 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 economy.

(with Reuters inputs)