EC DIRECTIVE ON UNFAIR TERMS IN CONSUMER CONTRACTS

This directive (93/13/EEC) requires member states to bring into force no later than 31 December 1994 laws or regulations to the effect that unfair terms in contracts between a consumer and a seller or supplier shall not be binding on the consumer. An unfair term is one which causes a significant imbalance in the parties’ rights and obligations arising under the contract to the detriment of the consumer.