An unfair contract term does not bind you

If a consumer contract contains an unfair term, that term does not bind the consumer. This is set out in section 62 of the Consumer Rights Act 2015.

The core rule

An unfair term is 'not binding on the consumer' (s62(1)). A business cannot rely on such a clause against you, even if you signed the contract.

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When a term is unfair

A term is unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties' rights and obligations to the detriment of the consumer (s62(4)). Fairness is judged on the nature of the contract and all the circumstances when it was agreed (s62(5)).

What this means in practice

Terms that let a business change the price or the deal one-sidedly with no right to walk away, charge disproportionate penalties for cancelling, or try to exclude liability for poor service are all open to challenge. The law also requires terms to be transparent and plain.

Key limits

You cannot attack the main price or core subject matter itself as 'unfair' if it is set out clearly — it is the other terms whose fairness is tested. And this is about consumer contracts (buying for personal use), not business-to-business deals.

What to do

1. Put in writing that the term is unfair and not binding under s62.
2. Keep the contract and correspondence.
3. Citizens Advice can help; the CMA deals with systemic breaches.

Source: section 62 of the Consumer Rights Act 2015. Checked 25 October 2026.