Newsroom

OFT won't entertain unfair terms

OFT publishes guidance for entertainment industry

PN 172/03     18 December 2003

The spotlight is on the entertainment industry as the OFT warns that unfair terms could lead to enforcement action with new guidance issued today.
Download Guidance on unfair terms in consumer entertainment contracts (pdf 290 kb).

The guidance clarifies what terms the OFT is likely to consider unfair in contracts for entertainment including tickets for concerts, sporting events and theatre, hire of performers and leisure activities such as bungee jumping.  The guidance includes examples of potentially unfair terms and gives revision tips.  The OFT is in particular concerned about terms that seek to:

• allow unrestricted changes to be made to the event/service 
• give unfettered rights to refuse admission to events
• deny refunds or limit them unfairly even where  a performance does not take place 
• impose excessive cancellation charges
• exclude liability for death or personal injury however caused.

Terms that allow a supplier to make unfettered changes to the contract could be considered unfair unless they are only minor or unavoidable alterations. Terms which allow material changes should be balanced with a consumer's right to cancel. Changes to a headline act or main star of a performance are likely to be considered a material change.

Terms refusing entry to consumers should indicate specifically the type of conduct likely to trigger refusal - such as consumers under the influence of alcohol/drugs or acting aggressively - rather than a unilateral right to refuse entry without reason.

Suppliers cannot deny consumers a right to a refund if the contract is not fulfilled. Where a consumer cancels without justification, they cannot expect a full refund. However, terms which allow suppliers to charge more than their reasonable loss or a reasonable pre-estimate of their expected loss would be open to challenge. Where consumers are entitled to a full refund this should include any booking fees.

Suppliers cannot legally exclude liability for death or personal injury if it is due to their own negligence or caused by any act or omission by a supplier.

Welcoming the guidance John Vickers, OFT Chairman, said:

'The entertainment industry is worth over £8 billion a year and covers all sorts of events and activities from pop concerts to hot air ballooning. The guidance is intended to get a fair deal for consumers by helping suppliers avoid unfair contract terms.'

The guidance is aimed at the industry, but will also be helpful to consumer advisers and enforcers such as trading standards. Consumer awareness is also important and to promote this the OFT will publish a leaflet in the new year to help consumers identify potentially unfair terms in entertainment contracts.

NOTES

1. 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. The UTCCRs protect consumers against unfair standard terms in contracts they make with traders. 

The OFT, together with certain other bodies, can take legal action to prevent the use of potentially unfair terms. A term is unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties' rights and obligations under the contract, to the detriment of consumers. 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.

2. Download Guidance on unfair terms in consumer entertainment contract (pdf 290 kb).

Back to:2003