The OFT is advising all businesses operating in the Island that new legal provisions covering unfair terms in consumer contracts are to come into force from 1st April 2014. The new provisions are based on existing UK law and should stop businesses burying unfair terms in small print, which consumers rarely have time to read. They include the so-called “grey list" which is an indicative and non-exhaustive list of the terms which may be regarded as unfair.
The OFT Chairman, David Quirk MHK explained-
“We do not believe that there is a major problem in the Island because most businesses use forms of contract which are derived from the UK and which should, therefore, already be compliant with the new Manx law. Nonetheless consumers do need legal protection and these laws will be another valuable tool in our pursuit of the small number of unscrupulous businesses that prey on the vulnerable and the unwary.”
The new provisions apply to contracts agreed between a seller or supplier and a consumer. They do not apply to business to business contracts.
A contract term which has not been individually negotiated can be regarded as unfair if it causes a significant imbalance in the parties’ rights and obligations arising under the contract, which is to the detriment of the consumer and cannot be justified.
Further information can be obtained via the related link.
