Court says PayPal Australia used unfair term in small business contracts (NASDAQ:PYPL)

Australia’s federal court said that PayPal (NASDAQ:PYPL) Australia used an unfair term in its standard contracts that led to erroneous fee charging to small businesses, the Australian Securities and Investments Commission (ASIC) reported.

The clause was unjust because PayPal (PYPL) would retain such ‘erroneously charged fees’ in the event these customers failed to notify it within 60 days of the fee appearing on its account statement.

The statements affect small businesses that opened a PayPal (PYPL) business account between September 21, 2021, and November 7, 2023.

The fintech company voluntarily assisted during the investigation, agreed that the term was unfair, consented to the declarations, and voluntarily removed it from its contracts on November 8, 2023, the regulator said.

The court declared the unfair term void from the start of the contracts and also ordered PayPal (PYPL) to pay ASIC’s litigation costs.

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