Contracts

Consumers rarely get to negotiate contracts with businesses, particularly contracts formed online. Consumer law attempts to address this imbalance between the consumer and a business in several ways.

In the UK, the Consumer Rights Act 2015 requires that the terms of a contract must be transparent, which means it is expressed in plain language. The terms must also be fair – unfair terms in consumer contracts are unenforceable. 

A contract term is unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties’ rights and obligations under the contract to the detriment of the consumer. There are also some terms which are automatically unenforceable, such as those excluding or limiting liability in relation to death or personal injury caused by negligence.

The Competition and Markets Authority (CMA) and other relevant bodies and regulators may take civil action to stop businesses breaching consumer law if they use terms that are unfair or not transparent.

Businesses offering subscriptions to consumers must carefully consider the consumer protection regulatory measures to avoid adverse regulatory scrutiny.

Key contact

Clive Gringras
Partner
Head of TMT
London
T +44 207 067 3189