Your customer needs to know how
long their contract is due to run and
how to cancel it, if they don’t want
it renewed.
Terms that can be used to extend a
contract beyond what your customer
would normally expect may be unfair.
The effect of these types of terms is
to potentially tie customers into
paying for something which they no
longer want or need.
For example, your terms are more likely to be fair if:
It is made clear to
customers at the outset
how their subscription or
contract will be renewed
and the contract requires
that they are sent a
reminder a reasonable
time before it is due to
be renewed.
The reminder should include clear information
about the terms of the proposed renewal of the
contract and the steps customers need to take
to stop the renewal, if they wish to.
They give your customers the right to cancel a
contract once it has been renewed, without having
to pay a cancellation fee, and any requirement to
provide notice of cancellation is reasonable (i.e. it
does not have the effect of tying the consumer into
the contract unfairly).
TIPS FOR WRITING FAIR TERMS
BE clEAR WITh yOuR cuSTOMERS uP FRONT
ABOuT hOW AND WhEN ThEIR cONTRAcT
WIll RENEW
PROvIDE A REMINDER OF WhAT
REASONABlE STEPS TO TAKE IF ThEy
WANT TO STOP ThE RENEWAl
CONTRACT
EXIT
SuBScRIPTIONS AuTOMATIc
ROllOvERS
AT A GlANcE GuIDE
WANT TO KNOW MORE
Introductory guide – click here for an overview of some of the key things you need to know
about unfair terms.
Individual guides – see our other guides on contract terms that may be unfair.
hAvING clEAR AND FAIR TERMS IN
yOuR cONTRAcT WIll
SAvE yOu TIME
hElP PREvENT DISPuTES
AND REPuTATIONAl DAMAGE
PROTEcT yOuR BuSINESS IF
SOMEThING GOES WRONG
TERMS ThAT MAy BE uNFAIR INcluDE
Overlengthy notice
periods may also
be unfair in a
contract which lasts
indefinitely. These
can force customers
to continue with a
contract longer than
they need or want to.
EXAMPlE
This agreement shall
continue indefinitely.
If you wish to cancel
at any time, you must
give us 6 months’
notice and continue
your monthly
payments up until
the expiry of the
notice period.
Automatically
renewing your
customer’s contract
or subscription
without requiring
you to take sufficient
steps to inform them
before doing so.
EXAMPlE
This will be a rolling
contract that will
automatically
renew unless you
contact us 24 hours
prior to renewal in
order to cancel.
Using excessively long
notice periods to tie
your customer in for
another fixed term.
EXAMPlE
After expiry of the
initial term, three
months’ notice
of cancellation is
required…
Imposing financial
sanctions on your
customer, which may
prevent them from
stopping a renewal.
EXAMPlE
If notice is given
between 2 and 4
weeks before expiry,
then 75 per cent
of the renewal fee
for the subsequent
year will become
payable…
£££
