Polish market regulator UOKiK has started proceedings against PayPal over suspected illegal contractual clauses. The case can result in a penalty of up to 10 percent of the company’s revenue.

The market regulator expressed concerns about PayPal’s ability to implement contractual penalties such as account suspensions, financial penalties and contract terminations.

According to UOKiK, PayPal insufficiently describes the actions that may cause users to be suspended or fined. The market regulator wants PayPal to clarify what is and isn’t permitted, and which actions the organization takes as a result of prohibited behaviour.

Unclear language and terms

UOKiK chief Tomasz Chrostny said that PayPal’s agreements must be drafted in simple, intelligible and exact language predicated on well-established standards.

PayPal stated in an email that it would respond to the market regulator appropriately. The organization claims it’s fully dedicated to compliancy and works with regulators worldwide to adhere to all laws and regulations relevant to the areas in which it operates.

UOKiK charges banks

Earlier this week, the market watchdog charged four banks with failing to appropriately deal with clients who reported unauthorized transactions. The banks in question are Bank Pocztowy, ING Bank Slaski, Nest Bank and Santander Consumer Bank.

According to the watchdog, money that disappeared from client accounts was not returned in time, and the customers who complained were given misleading responses.

The banks face fines equivalent to 10 percent of their annual revenue if found guilty. All the banks had something to say, with reactions ranging from no comment to promises of bettering customer relationships.

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