Which contract terms have previously been considered unfair?

Examples from the Market Court (now the Patent and Market Court, PMD)

Contract terms that are unfair to consumers may be prohibited by the Patent and Market Court. PMD has, among other things, judged the following terms as unfair:

• Requirement for written termination of contract
• Limitation of the consumer’s right to compensation
• Company’s requirement that oral promises be included in the contract to be valid
• Right to increase the price if the value-added tax (VAT) is raised, tax or other fee is introduced after the contract is concluded
• Reservation for future price changes

Examples from the EU

An EU directive provides further examples of contract terms that are typically unfair and therefore prohibited. For example, it is stated that a company’s terms may be considered unfair if the terms mean that the company:

• Has the right to retain advance payment upon termination without giving the consumer the corresponding right if the operator terminates the contract
• Demands disproportionate compensation for non-payment
• Is given the right to arbitrary termination without the consumer having the same right
• Binds the consumer to terms that they have not had a real opportunity to review before the contract was concluded
• Unilaterally changes the terms without stating a valid reason specified in the contract
• Unilaterally changes the characteristics of the service without stating a valid reason
• Is given the right to raise or set the price at delivery without the consumer having the right to withdraw from the contract if the price is too high
• Limits its obligation to follow promises made by company representatives to the consumer, such as retailers