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Image header Agence Europe
Europe Daily Bulletin No. 9914
Contents Publication in full By article 26 / 30
GENERAL NEWS / (eu) eu/court of justice

Unfair terms in consumer contracts must be examined as matter of course

Brussels, 04/06/2009 (Agence Europe) - According to a Court of Justice ruling on Thursday 4 June, national jurisdictions are to automatically examine the potentially unfair nature of terms used in contracts concluded with a consumer by a seller or supplier. There is no need for the parties involved to request an examination (C-243/08).

The case in question concerns a clause in the contract concluded in 2004 by a Hungarian national, Ms Sustikné Györfi, with the mobile phone operator, Pannon. The contentious clause stipulates that settlement of any dispute relating to the contract comes under the Budaörsi Városi Bíróság, the municipal court of Budaörs, the town where the company Pannon has its head office. The cost and difficulty entailed in having to travel to this court could be dissuasive to a degree that qualifies the clause as abusive, especially in the case of Ms Györfi, who receives a disability allowance and lives 275 km from Budaörs.

The Court of Justice also specifies that it is incumbent upon the national judge to examine potentially unfair clauses in a consumer contract, even though the consumer has not requested such an examination (for example, for fear of the cost entailed by court proceedings), and even if this examination questions its own territorial jurisdiction. If a clause of a contract is deemed unfair, it will not be applied - except at the contrary and express request of the consumer concerned. According to the Court ruling, this interpretation is necessary in the light of Council Directive 93/13/EEC on unfair contract terms. (C.D./transl.jl)

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