• Tomasz Chróstny, President of UOKiK, is conducting an investigation procedure to determine whether PayPal uses prohibited contractual provisions, including ones concerning unilateral change of contractual terms, as well as sanctions in the form of limiting access to services.
• The next step may be to initiate proceedings for declaring the clauses unlawful or for the infringement of collective consumer interests.

The President of UOKiK looks into the activities of the Luxembourg company, PayPal, with regard to unilateral changes to contractual terms and abusive clauses used in consumer trade. It is an online payment service that also acts as an e-wallet.

Concerns have been raised about provisions that allow the company to interfere with the performance of the contract in a largely arbitrary manner. For example, under these provisions, when a user commits the so-called "prohibited activities," PayPal may, among other things, terminate the user's contract, close their account, as well as restrict or block the user's ability to pay or send money. These are significant and severe sanctions that can, in practice, lead to restricting access to funds and depriving the consumer of the services.

"The scope of these rights, which the company has granted itself in the bylaws, is very broad – it is even possible for the company to unilaterally terminate the contract without notice. During the investigation, we will check whether PayPal arbitrarily decides to suspend services and block funds on users' accounts without giving any reasons or indicating violations committed by them ," says Tomasz Chróstny, President of UOKiK.

Moreover, the list of "prohibited activities" identified in the model contract, on the basis of which PayPal may suspend the provision of the service, is extensive and open-ended. Therefore, their interpretation lies solely with the trader.

In this context, it is also important to note that the provisions relating to the possibility of imposing contractual penalties on users, contained in the model contract used by PayPal in its dealings with consumers, stipulate latitude in their application, on the one hand, and the lack of liability of the trader in this respect, on the other hand.

In the course of the investigation, the President of the Office of Competition and Consumer Protection will check whether the provisions of the contracts with users, especially those concerning the rules of using PayPal's services and prohibited activities, are formulated in an unambiguous and clear manner, as well as whether they allow PayPal to arbitrarily impose sanctions in the form of limiting as well as blocking access to services.

The next step may be to initiate proceedings for declaring the clauses used by the entrepreneur in the model contract prohibited or proceedings for the infringement of collective consumer interests.

Consumer assistance:

Phone No. 801 440 220 or 22 290 89 16 – consumer hotline
Email: porady@dlakonsumentow.pl
Consumer Ombudsmen – in your town or county

Additional information for the media:

UOKiK Press Office
Pl. Powstańców Warszawy 1, 00-950 Warszawa, Poland
Phone +48 695 902 088, +48 22 55 60 246
E-mail: biuroprasowe@uokik.gov.pl
Twitter: @UOKiKgovPL