Unfair contract terms
Companies may not use terms and conditions that are unfair for the consumer in their contracts. Read more about how you can determine if contract terms are unfair and how they can be adjusted.
How do I know if contract terms are unfair?
Companies may not use terms and conditions that are unfair for the consumer in their contracts. A contract term may be unfair if it favours the company to the extent that the rights and obligations of the parties are not in balance. For example, the terms may not mean that the consumer has an unreasonably higher level of risk for any defects or faults in the product than the company.
In the most extreme cases of unfair contract terms, the only “obligation” the company has is receiving the purchase price, while the customer is left to bear all the risks. Among other things, an unfair contract term may concern the price, contract duration, delivery time, payment, billing, consequences of defects or termination of the contract.
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A contract term is unfair if, for example
- it prevents the consumer from using their legal rights, including requesting a refund for a defective product or service
- it limits or prevents the consumer’s access to their legal remedies. The consumer always has the right to have their case heard by the district court in the municipality they live in or to refer the matter to the Consumer Disputes Board
- it gives the company the right to one-sidedly change the contract terms without a valid reason specified in the contract
- it gives the company the right to one-sidedly change the features of the product or service without a valid reason
- it gives the company the right to increase the price of the product or service without giving the consumer the right to cancel the contract if the final price is too high compared to the price agreed when the contract was made
- an unreasonable level of compensation is demanded from a consumer who does not meet their obligations under the contract
the company reserves the right to terminate an ongoing contract without giving the consumer sufficient notice in advance - it is binding on the consumer even if the consumer has not had a real possibility to read the terms and conditions before the contract is made.
Adjusting unfair contract terms
Just because a certain contract term is unfair (for example a clause concerning the duration of the contract), this does not mean that the whole contract is invalid. If a specific contract term is unfair for the consumer, the contract may be adjusted, or changed in such a way that it is not unfair as a whole.
If a contract term is unreasonable, you should negotiate with the contracting partner on adjusting it and making it more reasonable. For example, an unfair clause may be removed, in which case the rest of the contract will remain unchanged and valid.
Among other things, the adjustment may concern contractual penalties, cancellation of the contract or price. However, the contract and the purchase may be cancelled if the terms and conditions as a whole are so unfair that you cannot be expected to fulfil the contract.
What you should do if you find contract terms unfair
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If you think that a contract term is unfair, you should first negotiate with the company on adjusting it and making it more reasonable. An unfair or unjustifiably changed contract term may concern, for example, price, duration of the contract, delivery time, payment, invoicing, penalties for errors or termination of the contract.
Often the problem can be resolved when you notify the company as soon as possible.
If the company does not react as you would like, submit a written complaint to the company with a detailed description of the problem and a list of your demands.
Justify your demands and provide evidence to support your claim, if possible. For example, photographs, documents, e-mail correspondence, and other evidence (such as fault diagnoses) may help.
You can use our Complaint Assistant to file a complaint. The Complaint Assistant also provides information about your rights and helps you assess what kind of demands you can make.
Complaint Assistant – Filing a complaint with a company
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If the opposing party is willing to resolve the issue, try to find a satisfactory solution through negotiation.
Consider carefully whether you can accept the service provider’s proposal. Often there is not just one right solution. However, reconciliation is usually a better and more economical solution than a prolonged dispute.
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If the complaint and the negotiation procedure do not lead to an amicable solution, you can contact the Consumer Advisory Services for instructions.
The processing of your case usually requires information about the opposing party’s view.