In its ruling of Thursday 20 March in case C-365/23, the Court of Justice of the EU declares that the Directive on unfair terms in consumer contracts also applies to contracts between sportspersons and companies.
In this case, a young sportsman under the age of 18, represented by his parents, signed a contract with a Latvian company in 2009, with a contractual clause requiring him to pay back 10% of his income if it reached at least €1,500 per month after becoming a professional athlete.
The Latvian courts ruled that the contractual term was unfair and requested the Court’s opinion on the application of the European Directive on unfair terms in this case.
The CJEU here confirms that the Unfair Terms in Consumer Contracts Directive does apply to this case, but that its assessment depends on a number of circumstances.
According to the Court, the clause must be drafted in a clear and comprehensible manner so that the consumer can assess the economic consequences of his or her commitment.
The existence of a significant imbalance must be assessed taking into account national rules, market practices and the circumstances surrounding the conclusion of the contract.
“In this context, the consumer must be informed of all the information necessary to enable him to assess the economic consequences of his commitment, failing which the clause cannot be considered to have been drafted in a clear and intelligible manner”, states the Court.
To see the judgment, go to https://aeur.eu/f/g17 (Original version in French by Isalia Stieffatre)