See our work on unfair contract terms including past undertakings, agreements and other publications.
On this page 
Latest update: 31 October 2023
We have published 2 undertakings under the Consumer Rights Act 2015 from PayPal (Europe) S.à.r.l. et Cie, S.C.A. and QVC UK on potentially unfair and unclear terms in their unregulated Buy Now, Pay Later (BNPL) contracts. The undertakings cover:
• For both firms, terms relating to continuous payment authorities (CPAs).
• For PayPal (Europe) S.à.r.l. et Cie, S.C.A, terms relating to what happens if the consumer cancels the purchase funded by the BNPL contract.
The firms have been fully cooperative in providing these undertakings.
Library
We expect firms to have regard to the material published on this page. In particular, as part of their risk management, firms should remain alert to undertakings or court decisions about other firms, since these will be of potential value in indicating the likely attitude of the courts, the FCA, the CMA or other bodies to similar terms or notices or those intended to have similar effects.
This page lists undertakings given to the FCA but does not list undertakings given to the CMA, which can be found on their website, or court decisions.
In addition, we encourage firms to read the CMA’s guidance on the unfair terms provisions of the CRA. The CMA has a leadership role in relation to the enforcement of unfair terms legislation and their guidance is intended to apply to all businesses, including those in the financial services sector, which use contract terms and notices with consumers. The guidance sets out the CMA's views on how the law is intended to operate.
Firms may also wish to seek their own legal advice on unfair contract terms to take account of developments in legislation and relevant case law.
It is ultimately for the courts to apply and interpret the unfair terms provisions of the CRA. Reading the material cannot be a substitute for taking independent legal advice.
Unfair Contract Terms Regulatory Guide (UNFCOG)
UNFCOG sets out our approach to assessing the fairness of a contract term. In UNFCOG 1.3.4(2), we state that, in deciding whether to ask a firm to undertake to stop including a term in new contracts and/or to stop relying on it in concluded contracts, we will consider the full circumstances of each case, this may include:
- whether we are satisfied that the contract term may properly be regarded as unfair within the meaning of the CRA
- the extent and nature of the detriment to consumers resulting from the term or the potential harm which could result from the term
- whether the firm has fully cooperated with the FCA in resolving our concerns about the fairness of the particular contract term
Read the full text of UNFCOG.
Publications
Withdrawn material
In March 2015 and May 2016, we withdrew some material as it no longer reflected the FCA’s view on unfair contract terms. This material is indicated in the table above. Where undertakings have been withdrawn from the FCA website, they are still binding between the firm who provided the undertaking and the FCA. However, other firms should no longer rely on the content of them as they may no longer reflect the FCA’s current view on unfair contract terms.