Closed consultation

Negotiating Line for the Consumer Rights Directive on the Concept of Assessability for Unfairness in Consumer Contracts

This consultation was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

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Original consultation

This consultation ran from to

Summary

BIS is seeking views to inform its negotiating position on the Consumer Rights Directive as to whether contingent or ancillary charges should be assessed for unfairness under the unfair contract terms provisions.

Documents

Call for evidence. Consumer Rights Directive: allowing contingent or ancillary charges to be assessed for unfairness

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Government response to the call for evidence on the Consumer Rights Directive: allowing contingent or ancillary charges to be assessed for unfairness

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Consultation description


Background to Call for Evidence

The Supreme Court judgement in the OFT v Abbey National plc case has led to uncertainty as to how UK legislation on unfair terms in consumer contracts applies to charges that are “contingent”, or “ancillary” to the core of the contract. The EU Consumer Rights Directive is currently being negotiated, and will replace four existing Directives including the Unfair Contract Terms Directive, which forms the basis of the UK law on unfair contract terms. The Commission or Members of the European Parliament may seek to address the issue when the proposal comes up for debate in the Autumn. The UK Government therefore needs a negotiating line to take for subsequent discussions in the Council of Ministers as to whether contingent or ancillary charges should be assessed for unfairness.

Purpose of Call for Evidence

This Call for Evidence invites views on a number of specific issues to help inform the development of the UK Government’s negotiating position in advance of discussions in the EU’s Council of Ministers later this year.

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Download the government response