Under the Consumer Rights Act 2015, when is a contract term considered unfair?

A contract term is considered unfair under the Consumer Rights Act 2015 when it causes a significant imbalance in the rights and obligations of the parties to the detriment of the consumer. This criterion is designed to protect consumers from terms that could create an unfair advantage for the business or supplier at the expense of the consumer's rights. The law emphasizes that consumer contracts should be fair and transparent, ensuring that no party is subjected to undue disadvantage.

The focus on significant imbalance reflects a key principle of consumer protection legislation overall, aiming to ensure that consumers are not exploited or burdened by excessively one-sided agreements. This consideration is central in evaluating whether a term is oppressive or unfairly tilts the contractual relationship against the consumer.

While other options touch on aspects of contract terms that may relate to fairness (such as complexity or negotiation), they do not directly address the fundamental concern of imbalance in rights and responsibilities, which is the core reason for deeming a term unfair under the Act.