The issue of unfair contracts has always been a long-standing concern. It can take many forms such as hidden fees, one-sided terms or conditions in favour of the business compared to the consumer. Indeed, consumers can find themselves in tricky situations due to incomprehensible legal jargon or uneven bargaining power. Disputes Resolution lawyer Leo Mineo explores some of the most common issues below that consumers may encounter.

Key issues of an unfair contract

1. Contractual language is obscure and complex. Many contracts are drafted with standard clauses that average people will not interpret and understand properly. This inaccessible jargon often leads to consumers agreeing with unfavourable terms, resulting in financial burdens or restricted rights. In response to this issue, there has been considerable efforts by practitioners to try to simplify the language and ensure people understand what they are agreeing to.

2. The presence itself of unfair terms in contracts. Businesses can include conditions that will, unreasonably, restrict the consumers rights or put them in a difficult and disadvantageous position. The Consumer Rights Act entered in 2015 targets these conditions by establishing that unfair terms and conditions in consumers contracts are unenforceable. However, in practice, it can be difficult to apply and enforce the Consumer Rights Act 2015, so consumers must remain aware of the above.

3. Contracts include hidden charges. We have all seen the example of the unfair terms being printed in extremely small characters at the end of the contract, which most of us ignore. It would, however, be a mistake as it puts consequential financial burden on consumers, often without them knowing about it. Regulators have sought to address this by requiring businesses to disclose financial implications of their contracts and be transparent as to the burden the consumers would face by signing them.

4. The lack of balance between the bargaining powers of the parties to a contract. Consumers often end up with less bargaining power and feel obliged to accept the conditions put forward to them by businesses. This is where education towards consumers’ rights and pushing businesses to have transparency and fairness in their processes are fundamental.

Protecting consumers

In order to protect consumers, the Competition and Markets Authority (CMA) was created by the British government. This organisation’s purpose is to enforce consumer protection laws. Indeed, the competition authority has as main goal to ensure the market is regulated, review unfair practices, take legal actions against the entities violating these rights and ultimately protect consumers.

Where an individual believes they have entered into an unfair contract, the English Court can help. Indeed, it is in their power to interpret contractual provisions and assess their fairness as well as grant compensation where needed.

How we can help?

Unfair contracts in the UK pose a significant threat to protecting consumers’ rights, despite the above-mentioned efforts put in place. Progress has been made but there is a continuous need for awareness on the consumers’ side. While consumers have rights for protection against businesses abusing their position, we know how difficult navigating within the legal system is.

At TV Edwards, we have a dedicated and expert team always available to assist and advise you on the issue of consumer rights and protection. We take a clear, practical and transparent approach and aim to get you the best possible results. If you would like to find more how we can help you, contact Adam Haffenden on 0203 440 8139 or email adam.haffenden@tvedwards.com.

Disclaimer: The information on the TV Edwards website is for general information only and reflects the position at the date of publication.