The Office of Competition and Consumer Protection (UOKiK) said on Monday that PayPal Europe had been fined $27.3 million by Poland’s competition authority for its failure to sufficiently notify consumers in its contractual provisions about the activities that will result in fines.
UOKiK President Tomasz Chróstny confirmed the hefty fine in a news release.
According to UOKiK, users might not grasp precisely what was prohibited and what action the corporation could take in such instances because prohibited acts that could result in penalties were not explained clearly.
Newsng gathered that Global authorities are stepping up their enforcement of key digital companies, making a strong statement to the market.
Although PayPal is not the first company to face penalties for using unclear terms, this sizeable amount may force other businesses to reconsider their user agreements.
“PayPal clauses are general, ambiguous and incomprehensible,” Chrostny said.
“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.”
PayPal claimed to have been closely collaborating with UOKiK throughout its inquiry and to be examining the statement.
“PayPal is committed to treating its customers fairly and giving them accurate, easy to understand and transparent information,” the company said in an e-mailed comment.
“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,” it added.
Chrostny further stated, “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.”
We earlier reported that as part of its AI effort, PayPal appointed one of Walmart’s top IT leaders as its new chief technology officer in June.
