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| OFT wants 'no surprises' in small print of contracts | OFT wants 'no surprises' in small print of contracts |
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| Consumers should expect "no unwelcome surprises" in the small print of contracts, a regulator has said. | Consumers should expect "no unwelcome surprises" in the small print of contracts, a regulator has said. |
| One in five people experienced a problem with contracts in the past year, the Office of Fair Trading (OFT) found during an investigation into the clarity of contracts and small print. | One in five people experienced a problem with contracts in the past year, the Office of Fair Trading (OFT) found during an investigation into the clarity of contracts and small print. |
| It said 70% of its consumer workload related to contracts. | It said 70% of its consumer workload related to contracts. |
| Contracts for telecoms and internet access caused the most problems, the OFT found. | Contracts for telecoms and internet access caused the most problems, the OFT found. |
| "Consumer law is not there to protect the careless or the over-hasty," said Heather Clayton, of the OFT's consumer group. | "Consumer law is not there to protect the careless or the over-hasty," said Heather Clayton, of the OFT's consumer group. |
| "This report reconciles the need for small print with the real-life behaviour of consumers [who] should be free to focus on the main elements of the deal, confident that there will be no unwelcome surprises in the small print." | "This report reconciles the need for small print with the real-life behaviour of consumers [who] should be free to focus on the main elements of the deal, confident that there will be no unwelcome surprises in the small print." |
| 'Hidden' conditions | 'Hidden' conditions |
| The OFT has not named and shamed any companies flouting the law at this stage. | 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. | 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. | 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 regulator estimated that "a few billion pounds" was lost to consumers every year as a result of unclear or misleading contracts. | The regulator estimated that "a few billion pounds" was lost to consumers every year as a result of unclear or misleading contracts. |
| It could not "legislate away" small print, according to Ms Clayton, but it stressed that small print should not hide things that affected the headline price. | It could not "legislate away" small print, according to Ms Clayton, but it stressed that small print should not hide things that affected the headline price. |
| The OFT's Mary Starks, who was the author of the report, said: "People should be able to concentrate on the main elements of the deal, not worry about small print traps." | The OFT's Mary Starks, who was the author of the report, said: "People should be able to concentrate on the main elements of the deal, not worry about small print traps." |
| However, it was clear that many people did not read the small print. The survey, of 4,000 people, found that only quarter of those asked did so in detail. | However, it was clear that many people did not read the small print. The survey, of 4,000 people, found that only quarter of those asked did so in detail. |
| "Many rely on the reputation of the business they deal with for good treatment," Ms Starks said. | "Many rely on the reputation of the business they deal with for good treatment," Ms Starks said. |
| Problems | Problems |
| Among the 32 sectors studied in the investigation, telecoms and internet access were the most problematic. | Among the 32 sectors studied in the investigation, telecoms and internet access were the most problematic. |
| This was followed by contracts about home entertainment deals, deliveries, home improvement, travel and mobile phones. | This was followed by contracts about home entertainment deals, deliveries, home improvement, travel and mobile phones. |
| The OFT has previously studied contracts in the following cases: | The OFT has previously studied contracts in the following cases: |
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| The regulator hopes to use these examples as a blueprint for other businesses. This could mean that information from the small print is transferred into the body of a contract, or more explanation is given about certain words or phrases. | The regulator hopes to use these examples as a blueprint for other businesses. This could mean that information from the small print is transferred into the body of a contract, or more explanation is given about certain words or phrases. |
| Businesses should also make clear the length of any fixed-term deal - such as for a mobile phone contract - and how easy it was for customers to break this contract, the OFT said. | Businesses should also make clear the length of any fixed-term deal - such as for a mobile phone contract - and how easy it was for customers to break this contract, the OFT said. |
| Font size | Font size |
| 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. | 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. | Other consumer groups have also called for contracts - including small print - to be clearer, especially for the vulnerable and those who have difficulty seeing. |
| However, the OFT's investigation did not conclude that small print was generally written in a typeface that was too small to read. | However, the OFT's investigation did not conclude that small print was generally written in a typeface that was too small to read. |
| Those aged under 30 had more problems with contracts than the over 50s, it found. | Those aged under 30 had more problems with contracts than the over 50s, it found. |
| It did discover that the quality of the paper a contract was printed on was important. The thinner the paper, the less likely people were to read the contract in detail. | It did discover that the quality of the paper a contract was printed on was important. The thinner the paper, the less likely people were to read the contract in detail. |
| Financial companies, such as those offering loans, have regularly faced criticism for terms and conditions being "hidden" in small print. | 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. | However, this sector was not covered in detail during the investigation. |
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