The Australian Securities & Investments Commission (ASIC) recently brought legal action against PayPal’s local unit, accusing them of unfair terms in their standard contracts with small business customers. After a thorough investigation, the court found that PayPal had been forcing customers to accept billing errors as accurate if they did not report them within 60 days. This was deemed a violation of fair contract terms and ASIC Deputy Chair Sarah Court emphasized that such practices will not be tolerated.
As a result of the court’s decision, PayPal has agreed to remove the disputed term from their contracts and pay ASIC’s litigation costs. The company has also agreed to the declarations and has taken steps to ensure fairness in their future contracts with small businesses. While PayPal has yet to comment on the ruling, this case serves as a reminder to all businesses of the importance of fair contract terms and the consequences for those who do not adhere to fair practices when dealing with small businesses.
In conclusion, this case highlights the need for businesses to prioritize fairness in their contracts with small businesses. The outcome of this legal action serves as a warning to companies that engage in unfair practices that they will face consequences if they continue down this path.
