The corporate regulator alleges a contract clause that allows PayPal to keep any fees wrongfully charged to customers if the payments provider’s errors are not identified within two months is unfair.
The Australian Securities and Investments Commission sued PayPal in the Federal Court on Thursday, arguing the offending clauses – which appear in more than 600,000 PayPal contracts with Australian businesses – should be considered “unfair” under the ASIC Act and made void by the court.
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James Eyers writes on banking, payments and fintech. He is a former legal and investment banking editor at the AFR, has degrees in commerce and law from UNSW, and is co-author of Buy now, pay later: The extraordinary story of Afterpay Connect with James on Twitter. Email James at jeyers@afr.com.au
