The supervision of the original Price Marking Order has been in confusion ever since the court case that decided a hidden price on the underneath surface of an object fulfilled the provisions. Agreement has now been reached on the proposals for an EU Directive which will make it obligatory for retailers to indicate for each product both the selling price and the unit price per litre or kilogram. Small businesses may be exempt for the first two years if it is considered to constitute an excessive burden. Will the amending legislation make it possible to prevent the current confusion?
Under the Package Travel Regulations 1992 buyers must be provided within the holiday brochure with general information regarding passport and visa requirements applicable to British Citizens. The full information must be provided before a contract is concluded. It is now proposed to extend this to European consumers purchasing a holiday from a British company. Consultation is at present taking place.
New guidance has recently been issued by the Office of Fair Trading on the Unfair Terms in Consumer Contracts Regulations implementing the EC Directive of 1993. These offer new rights in addition to those of the Unfair Contract Terms Act 1977. They apply to contracts between a consumer acting outside the course of his business and cover standard terms rather than those negotiated specifically between the two parties to the contract. Contracts of employment, inheritance and family law matters are excluded.
‘Core terms’ such as the price to be paid are also excluded so one cannot argue that the contract does not represent fair value for money, but these terms must be written in plain and intelligible language. Only a court can decide if a term is unfair but must take into account the nature of the goods or services, all the other terms of the contract and the circumstances under which it was made. A ‘requirement of good faith’ will take into consideration the relative bargaining strengths of the consumer and the business, and whether the business’s behaviour was fair in getting the consumer to agree to the contract.
Enforcement is through the Director General of Fair Trading who, having considered the case, can take court action where he thinks it appropriate. He may first seek an undertaking to cease the practice or revise the standard terms. The DG wants to receive examples of what appear to be unfair terms and issues a bulletin from time to time describing action taken. A list of terms that may be unfair has been provided in the briefing leaflet Unfair Standard Terms which can be obtained from the OFT. They include:
A new scheme that, so far, only involves about a quarter of the estimated eligible estate agents in the UK. To qualify a partner must belong to the National Association of Estate Agents, the Incorporated Society of Valuers and Auctioneers or the Royal Institute of Chartered Surveyors. A decision of the Ombudsman is binding on the estate agent but not on the complainant. Compensation of up to £50,000 can be awarded. A previous Ombudsman scheme set up in 1990 involved most of the larger estate agents but some opted out. It is as well to enquire if your estate agent belongs to an Ombudsman scheme before employing him.
To prevent gazumping there are suggestions by the Government for new laws to provide that legal contracts must be signed by both parties. Deposits of 1% would have to be paid which would be forfeited if either party then backs out. The sellers would have to provide an information package containing structural surveys and Council searches which would become part of the contract.
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