PayPal unit dragged into legal battle as Australian regulator sues over unjust clauses in small business contracts

Australia’s securities regulator, the Australian Securities and Investments Commission (ASIC), has announced that it will be taking PayPal Australia Pty Ltd to court over allegations that the company’s contracts with small business customers contain an unfair term. This term states that customers have 60 days to notify PayPal of any discrepancies in fees charged. If customers fail to do so within this time period, they are forced to accept the fees as accurate, allowing PayPal to retain fees that it may have inaccurately charged. ASIC views this term as unfair and believes that it places an additional burden on small businesses to detect and correct charging errors. The case highlights the importance of fair contracts and protecting small businesses from being burdened by unfair terms.