Ever read the fine print of a contract to discover that the actual term of the contract contradicts the claims? Britain’s Office of Fair Trading is looking into this practice:
Companies whose small print changes the basis of consumer deals will face investigation by consumer regulator the Office of Fair Trading (OFT), it has said. According to the OFT, one in five consumers had experienced a contract problem in the last year.
The OFT has set out the criteria it will use to judge whether or not consumer contracts are unfair and should be investigated by it. The crucial factor determining the fairness of contracts will be the consumer’s understanding of what the contract means.
If the small print of terms and conditions alters the contract from what a consumer would understand it to mean from other claims made by a company, that is likely to be harmful and could be unlawful, the OFT said in a paper on unfair contracts.
“Our approach to identifying the potential for harm from a particular contract, before considering whether there is any breach of law, is to assess whether a contract term changes the deal from what consumers understand it to be,” said the OFT’s paper.
“One way in which a contract term can change the deal is where there are surprises buried in the small print,” it said. “Our research found that for 80 per cent of those who had experienced a problem with a consumer contract, the problem came as a surprise.”
