07:22 AM EDT, 07/05/2024 (MT Newswires) -- PayPal Holdings' ( PYPL ) Australian unit was found to have used an unfair term in its standard contracts with small businesses, according to a Friday statement from the Australian Securities and Investments Commission or ASIC.

ASIC said Australia's Federal Court found the term unfair because it allowed PayPal ( PYPL ) to retain "erroneously charged" fees on small businesses if they fail to notify PayPal ( PYPL ) of the error within 60 days of the fee's inclusion in their account statements.

According to the statement, PayPal ( PYPL ) agreed that the term was unfair and voluntarily removed the term from its contracts starting November 2023. The court ordered PayPal ( PYPL ) to pay ASIC's litigation costs, the regulator added.

PayPal ( PYPL ) did not immediately respond to MT Newswires' request for comment.

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