08:52 AM EDT, 07/15/2024 (MT Newswires) -- (Updates with PayPal's ( PYPL ) response in the final paragraph.)

PayPal Holdings ( PYPL ) was fined 106.7 million Polish zloty ($27.4 million) by Poland's competition and consumer protection watchdog for using prohibited language and rules in its user agreement, the agency said on Monday.

Poland's Office of Competition and Consumer Protection said PayPal's ( PYPL ) user agreement contains 34 items that violate the country's consumer protection rules.

Among them is a rule stating that users who attempted to make a payment to a blocked entity would be punished and language suggesting that PayPal ( PYPL ) users could be sanctioned for using the platform in a way that violated the laws or regulations of any jurisdiction in which the company operates. Another provision allows PayPal ( PYPL ) "at any time" and "at its discretion" to block the user's money "in the amount as high and for a period as long as necessary," the regulator said in a statement.

"The open-ended catalog of contractually stipulated sanctions, which were additionally not linked to individual violations, meant that the company's decisions were arbitrary," said the regulator, which ordered that the language in the user agreement be removed.

PayPal ( PYPL ) has the right to appeal the decision, the regulator said.

PayPal ( PYPL ) said that it was reviewing the announcement and has been working closely with the regulator throughout the investigation.

"PayPal ( PYPL ) is committed to treating its customers fairly and giving them accurate, easy-to-understand, and transparent information," a spokesperson said in an email to MT Newswires.

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