The Competition and Markets Authority (CMA) has published a series of guides aimed at small businesses, to help them to understand which terms should be considered to be fair and unfair in consumer contracts.
Characteristics of unfair terms
- Unfairly tying consumers into contracts
- Imposing financial penalties on consumers
- Binding consumers to hidden terms
- Misleading consumers about their rights
- Excluding or restricting liability for breach of contract
- Allowing the supplier to cancel or change the contract without valid reason, with no penalty
- Including provisions that cause consumers to unfairly lose payments if the contract is cancelled
- Enabling only the supplier to decide whether goods are faulty
- Requiring consumers to pay for testing or inspection of goods in the event of a justifiable complaint
Issues that should be included in the terms used in consumer contracts
- Price and payment
- Cancellation rights
- Guarantees
- Data protection
- Limits and caps on liability
- Boiler plate clauses (including waivers and severance)
Questions about contract terms
If you are unsure whether your terms are fair or not – as either a supplier or a consumer – contact our specialist team of corporate lawyers using the telephone numbers below.
- Leicester: 0116 254 8871
- Hinckley: 01455 639 900
- Market Harborough: 01858 467 181