Firms face clampdown over lengthy and confusing small print

http://www.theguardian.com/money/2016/mar/01/firms-face-clampdown-over-lengthy-confusing-small-print

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Consumers who have been bamboozled by small print and unexpectedly tied into contracts or forced to pay fees are being urged to contribute to a consultation, which could lead to a change in the law.

Complicated and extensive terms and conditions that customers may fail to understand - and frequently even choose to ignore - are being reviewed, the government’s business secretary, Sajid Javid, announced on Tuesday.

The government believes that if t&cs were clearer and easier to navigate, consumers would be able to make better informed choices before buying a product. That would make products easier to compare, increasing competition, which would inevitably drive prices down, Javid said.

Research carried out by the consumer group Which? in 2015 looked at the terms and conditions for car and travel insurance. It found that some stretched to more than 38,000 words, making it more wordy than Shakespeare’s Hamlet and Romeo and Juliet.

The Department for Business, Innovation and Skills (BIS) is asking consumers who have experienced difficulties when consulting their t&cs to submit evidence.

The government is also seeking views on the creation of a power to apply civil fines to businesses who do not comply with consumer protection rules in this area. The power to fine non-compliant businesses would deter future breaches and strengthen fair competition.

Ministers want to support consumers by reducing the risk of any nasty surprises hidden within opaque or lengthy small print. This could include being tied into long contracts or facing demands for the payment of unexpected charges.

Javid said: “It seems like everything we buy these days comes with the line ‘terms and conditions apply’. Whether it’s a train ticket, car insurance or downloading an app, we are faced with pages of small print that is difficult to navigate through. In order to kick off the process, those with views are asked to respond to our straightforward call for evidence.”

Richard Lloyd, the executive director of Which?, said: “Consumers shouldn’t have to read endless pages of baffling jargon just to ensure there are no nasty surprises hidden away in the terms and conditions.

“We will be working with industry and the government to test how t&cs are presented, particularly online and on mobile devices, to help ensure they work better for consumers.”

Separate research commissioned by the investment firm Skandia revealed that just 7% of Britons read the online t&cs when signing up for products and services.

A fifth of people surveyed said they had suffered as a result of ticking the t&cs box without having done their homework. One in 10 found themselves locked into a longer contract than expected because they signed up without reading the small print, while one in 20 lost money by not being able to cancel or amend hotel or holiday bookings.