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CMA updates guidance on unfair contract terms

Posted at August 1, 2015 | Categories : News

Consumer-facing businesses are being offered help complying with consumer law as the Competition and Markets Authority publishes new guidance on unfair contract terms.

The move follows changes to the law in the Consumer Rights Act 2015, which come into force in October this year strengthening two pieces of legislation that target contract terms and notices that could be used to give firms an unfair advantage in their dealings with consumers.

The new guidance assists businesses in understanding what makes terms and notices unfair; what risks they can face from using unfair wording; and top tips on how to ensure terms and notices are fair and clear. It also identifies key things businesses should do to ensure that they communicate clearly with consumers and avoid disputes arising from unfair terms.

Alongside specific advice such as avoiding using legal jargon in contracts, the guide urges businesses to deal “openly and fairly” with consumers and not to use terms you “would not like to sign up to yourself”. Full details can be found on the gov.uk website.