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The Australian Securities and Investments Commission (ASIC) has launched proceedings against PayPal Australia for alleged unfair contract terms for small business customers.
The watchdog has identified that one of the contract terms states that PayPal business account holders have 60 days to notify the platform of fee discrepancies or errors that have been charged. After that time has passed they accept the fees as being accurate.
ASIC is alleging that this retaining of overcharge fees is unfair as it allows PayPal to keep additional fees due to its own errors.
According to court documents, ASIC is arguing that PayPal’s Fee Error Term is unfair under the Australian Securities and Investments Commission Act 2001 and “…void by operation of s 12BF(1) of the Act where the Fee Error Term appears in standard form small business contracts”.
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