OFT calls for clearer contracts

Consumers should expect “no unwelcome surprises” in the small print of contracts, a regulator has said.

One in five people have experienced a problem with contracts in the last year, the Office of Fair Trading (OFT) found after an investigation into the clarity of contracts and small print.

It said 70% of its consumer workload related to consumer contracts.

Contracts for telecoms and internet packages caused the most problems, the OFT found.

‘Hidden’ conditions

The OFT has not named and shamed any companies flouting the law at this stage.

The investigation, which began in February 2010, studied how well people understood typical contracts and small print.

It also looked into the differences in contracts being offered to people buying online, on the doorstep after a sales pitch or on the telephone.

The Plain English Campaign has previously said that it is a consumer’s right to be offered a contract that can be read, understood and acted upon after the first time of reading.

Other consumer groups have also called for contracts – including small print – to be clearer, especially for the vulnerable and those who have difficulty seeing.

Financial companies, such as those offering loans, have regularly faced criticism for terms and conditions being “hidden” in small print.

However, this sector was not covered in detail during the investigation.