Poland's Antitrust Authority Fines PayPal Europe $27.3 Million for Unclear Contractual Clauses

Poland’s antitrust and consumer protection watchdog, UOKiK, has imposed a fine of 106.6 million zlotys ($27.3 million) on PayPal Europe for not clearly specifying in its contractual clauses the activities for which consumers might be fined, UOKiK announced this week.

UOKiK highlighted that the descriptions of prohibited activities that could result in penalties were unclear, making it difficult for users to understand what actions were not allowed and what measures the company might take in such cases.

“PayPal clauses are general, ambiguous, and incomprehensible. When reading these provisions, a consumer cannot predict which of their actions may be considered prohibited, or what sanctions may be imposed on them by the entrepreneur,” said Tomasz Chrostny, head of UOKiK, in a statement.

Chrostny added, “Therefore, PayPal has an unlimited possibility to decide at will whether the user has committed a prohibited act and what penalty they will face for it, which may be, for example, blocking money on the account.”

UOKiK noted that the decision is not final and PayPal has the opportunity to appeal to a court.

In response, PayPal stated, “PayPal is committed to treating its customers fairly and giving them accurate, easy to understand and transparent information. We have been working closely with UOKiK throughout its investigation, and we are reviewing today’s announcement. As UOKiK states, this decision is not final and there will be an opportunity to appeal.”