What is Unfair Terms in Consumer Contracts?

Under Part 2 of the Consumer Rights Act 2015, any term in a B2C contract is unfair — and therefore not binding on the consumer — if it creates a significant imbalance in the parties' rights and obligations to the detriment of the consumer, contrary to the requirement of good faith. All consumer-facing terms must be written in plain and intelligible language; if there is doubt about the meaning of a term, the interpretation most favourable to the consumer prevails. Terms most commonly challenged as unfair include automatic renewal clauses, unilateral price variation after contract formation and disproportionate cancellation penalties. The CMA and Trading Standards can take enforcement action against businesses using unfair terms.