OFT launches investigation into consumer contracts

The OFT has today launched a market study to examine when, how and why contracts may cause difficulties for consumers.

The OFT intends to look at how well consumers understand typical contracts and how this varies when contracts are, for example, presented online, over the phone, or during a face-to-face sales pitch.

The OFT will also look at how firms approach consumer contracts, and any practices which deliberately or unintentionally disadvantage consumers. The results should be of benefit to firms who are trying to make important terms and conditions clear to consumers buying their products and services.

Heather Clayton, Senior Director of OFT’s Consumer Market Group said:

“Today consumers are offered a range of complex contractual arrangements, particularly for goods and services offered online. We often see situations in many different markets where people lose out as a result of not understanding contracts. We want to understand the cause of these problems and look for remedies that will not only protect consumers, but also help those businesses that are trying to provide clarity to their customers.:

The study is expected to be completed in Winter 2010.