Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Companies that hide charges in small print should be taken to court, says Law Commission

 

Simon Read
Monday 18 March 2013 21:34 EDT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Companies which tuck away hidden charges in the small print should face being taken to court, the Law Commission has recommended.

In a report published today on Unfair Terms in Consumer Contracts, it says that British courts should be empowered to examine the fairness of hidden costs from the likes of budget airlines, estate agents and gyms.

David Hertzell, Law Commissioner for England and Wales, said: "The current law is baffling - so much so that consumers and regulators are reluctant to challenge unfair charges.

"Both traders and consumers need clearer law. If a price is transparent and prominent, the courts should not interfere - but other charges need to be fair."

With millions of people now turning to price comparison sites before buying, traders are being forced to advertise low headline rates to attract consumers in, before hitting them with various other charges to ensure they make a decent profit.

The Law Commission said the problem with the small print is not "just about font size" - it also includes poor layout, densely phrased paragraphs and legal jargon.

Another recommendation in the report is for courts to have more powers to remove legal jargon from computer software contracts.

The end user licence agreements - designed to limit the product's use - should be expressed in "plain, intelligible language".

Professor Hector MacQueen, Scottish Law Commissioner, which jointly published the report, said: "The software industry has argued that consumer legislation does not apply to some end user licence agreements as they are 'licences' rather than 'contracts'. Our recommendations close this supposed loophole.”

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in