Unfair terms in consumer contracts

Drafting terms for trader to consumer contracts is subject to a series of rules described in the Consumer Rights Act 2015 (‘CRA’). These rules set out a test for determining fairness as well as a series of exemptions and additional considerations.

Failure to comply can lead to enforcement action by the Competition and Markets Authority (‘CMA’) or the courts which may include a fine of up to 10% of global turnover. The courts also have the power to declare a term unenforceable.

This session summarises the key provisions of the CRA, the relevant guidance of the CMA and examines a series of practical examples with particular emphasis on the following topics:

Fairness Test

• Key requirements
• Burden of proof

Core Terms Exemption

• Meaning of ‘core terms’
• Transparency and prominence qualifications

Guidance

• Summary of relevant case law
• CMA guidance on terms likely to be unfair

Enforcement

• Powers of the courts
• Powers of the CMA

Who this is for:

Lawyers and non-lawyers with an interest in consumer law

Top 3 facts from the webinar:

• Understand the pitfalls associated with unfair terms
• Comprehend the approach taken to enforcement
• Review and revise existing terms to ensure compliance

Level of expertise:

All Levels – this can be picked up throughout anyone’s professional career regardless of experience

CPD hours:

This webinar provides you with 1 hour of learning.

Attendees will receive a CPD certificate upon completion of this course.

Learning objectives:

• To understand the requirements of the fairness test
• To consider the applicability of the core terms exemptions
• To comprehend the enforcement powers available to the courts and to the CMA