Office of Fair Trading v Foxtons Ltd

Office of Fair Trading v Foxtons Ltd

In a collective challenge under the Unfair Terms in Consumer Contracts Regulations, the court assesses the fairness of standard terms by reference to a typical consumer and typical circumstances. The court cannot grant injunctive or declaratory relief that purports to bind Foxtons in all individual cases, as individual circumstances may differ. Accordingly, the OFT's claim for an injunction restraining Foxtons from enforcing or relying on the challenged terms in all contracts is too broad and must be struck out in part. The OFT may seek and the court may grant declaratory relief as to the clarity of language of the terms, but not as to their binding effect on all consumers in all contracts.

Parties
Claimant: The Office of Fair Trading; Defendant: Foxtons Limited
Jurisdiction
England and Wales
Judgment Date
17 July 2008
Procedural Posture
Civil (collective Challenge Under Consumer Protection Law) / Interlocutory Application (ruling on Strike Out and Scope of Relief)
Outcome
Application allowed in part; parts of the OFT's claim struck out.
Legal Topics
Unfair Terms in Consumer Contracts, Collective Challenge Vs Individual Challenge, Declaratory Relief, Injunctions, Interpretation of Consumer Contracts, Jurisdiction and Locus Standi
Consumer Protection Law Contract Law Civil Procedure Unfair Terms in Consumer Contracts Collective Challenge Vs Individual Challenge Declaratory Relief Injunctions Interpretation of Consumer Contracts +1 more

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Parties

The Office of Fair Trading

Claimant

Foxtons Limited

Defendant

Procedural Posture

Civil (collective Challenge Under Consumer Protection Law) / Interlocutory Application (ruling on Strike Out and Scope of Relief)

Legal Issues

  1. 1 Whether the OFT can obtain an injunction restraining Foxtons from enforcing or relying on allegedly unfair terms in all existing and future contracts with consumers.
  2. 2 Whether the OFT can obtain a declaration that the relevant terms are not binding on all consumers in all contracts.
  3. 3 Whether the OFT has locus standi to seek declaratory relief in a collective challenge under the Regulations.

Ratio Decidendi

In a collective challenge under the Unfair Terms in Consumer Contracts Regulations, the court assesses the fairness of standard terms by reference to a typical consumer and typical circumstances. The court cannot grant injunctive or declaratory relief that purports to bind Foxtons in all individual cases, as individual circumstances may differ. Accordingly, the OFT's claim for an injunction restraining Foxtons from enforcing or relying on the challenged terms in all contracts is too broad and must be struck out in part. The OFT may seek and the court may grant declaratory relief as to the clarity of language of the terms, but not as to their binding effect on all consumers in all contracts.

Court Disposition

Application allowed in part; parts of the OFT's claim struck out.

Orders

  • Striking out of the words 'enforcing, attempting to enforce or otherwise relying on' in paragraph 15(c) of the endorsement on the Claim Form.
  • Striking out of paragraph 15(a) of the endorsement on the Claim Form (declaration that terms are not binding on all consumers).