Unfair Contract Terms Directive

The Unfair Contract Terms Directive is a European law designed to protect consumers from unfair terms in contracts they enter into with businesses. It ensures that any contract clauses that create a significant imbalance between the parties' rights and obligations—favoring the business at the consumer's expense—can be challenged. These unfair terms are not legally binding, meaning they can be ignored. The Directive aims to promote fairness and transparency in consumer agreements, helping to ensure that consumers are treated fairly and can understand their rights when dealing with businesses.