Poland's consumer protection watchdog, UOKiK, has levied a hefty fine of 106.6 million zlotys (£23 million) against PayPal Europe for employing unclear contractual clauses.

The decision, announced on Monday, highlights concerns over the digital payment giant's user agreement.

UOKiK's head, Tomasz Chrostny, criticised PayPal's terms as "general, ambiguous and incomprehensible", asserting that users were left unable to discern which actions might be deemed prohibited or what sanctions they might face. The regulator took particular issue with PayPal's broad catalogue of 34 prohibited activities and the company's discretionary power to impose severe penalties.

Among the contentious clauses was PayPal's assertion that users could face unspecified sanctions for violating "any law, statute, ordinance or regulation" in any country, even if unrelated to their PayPal account usage. The agreement also permitted PayPal to block user funds "at any time" and "at its discretion" for "as long as necessary".

The watchdog argued that such terms could lead to arbitrary decisions by PayPal, potentially depriving consumers of access to their funds for indefinite periods. Sanctions outlined in the agreement included fines of $2,500 or more, account closure without notice, and denial of future services.

In response, PayPal stated its commitment to fair treatment of customers and providing "accurate, easy to understand and transparent information". The company noted it had been cooperating with UOKiK throughout the investigation and is reviewing the announcement.

The decision is not final, and PayPal retains the right to appeal in court. If upheld, the company will be required to inform consumers of the ruling on its website.

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