OFT gives guidance on caravan contract terms

165/05 1 September 2005

New guidance to help make caravan contract terms clearer and fairer has been published by the OFT.

Download Guidance on unfair terms in holiday caravan agreements (651 kb)

The guidance has been produced for owners of caravan parks and organisations offering advice to consumers looking to buy a caravan. A leaflet is also being produced to give tips to potential buyers and owners when they are buying a caravan (see note 1).

Download A fair pitch for your holiday caravan (84 kb)

This guidance deals with static holiday caravans, also known as caravan holiday homes or lodges. These are caravans that are stationed on a plot on a caravan site licensed for this purpose (see note 2).

The guidance sets out some terms that the OFT regards as unfair. They include terms that:

allow park owners to move caravans to a less attractive pitch on their park at their discretion
allow park owners to increase pitch fees and other charges at their discretion
allow park owners to withdraw amenities or services at their discretion
deny liability for defective or misdescribed caravans, misrepresentations by park staff, or their negligence
tie caravan owners into buying goods and services exclusively through the park owner for no valid reason.

Before producing the guidance, the OFT consulted with over 300 organisations including caravan park owners' associations, caravan owners' groups, local trading standards services, citizens advice bureaux and government departments.(see note 3).

Sir John Vickers, OFT Chairman, said:

'Buying a caravan is a very expensive purchase and contract terms must be clear and fair. Our guidance, together with enforcement action by trading standards or the OFT where necessary, will help achieve that.'

NOTES

1. Copies of the Guidance on unfair terms in holiday caravan agreements, are available from the publications/business leaflets/unfair contract terms area of the site.

2. The consumer leaflet, 'A fair pitch for your holiday caravan – A guide to agreements for static holiday caravans' is being published at the same time as the guidance, copies are available from the publications/consumer leaflets/general consumer rights area of the site. Copies of the leaflet will be available to all members of the National Association of Caravan Owners as an insert in the next edition of 'The Holiday Caravanner'.

3. The guidance does not apply to terms in agreements for mobile homes, known as residential park homes, or for touring caravans or motorhomes. (Occupiers of park homes may have additional protection under the Mobile Homes Act 1983, the Caravan Sites Act 1968, and the Housing Act 2004.)

4. A report on the consultation entitled Guidance on unfair terms in holiday caravan agreements – Consultation response is also being published at the same time as the guidance. Copies are available from the publications/business leaflets/unfair contract terms area of the site.

5. The Unfair Terms in Consumer Contracts Regulations (UTCCRs) came into force in 1999 (superseding the UTCCRs 1994) and apply to standard contract terms used with consumers in contracts made after 1 July 1995. The UTCCRs protect consumers against unfair standard terms in contracts they make with traders.

6. The OFT and local trading standards services, together with certain other bodies, can take legal action to prevent the use of potentially unfair terms. A term is unfair if it causes a significant imbalance in the parties' rights and obligations under the contract, to the detriment of consumers. Standard terms may be drafted to protect commercial needs but must also take account of the interests and rights of consumers by going no further than is necessary to protect those legitimate commercial interests. An unfair term in a contract covered by the UTCCRs is not binding on the consumer. Ultimately, only a court can decide whether a term is unfair.

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