ADVISORY: Understanding Unfair Contract Terms (UCTs)

Posted: July 31, 2025
Infographic illustrating how consumers enter into contracts with businesses during transactions, highlighting key components such as return and refund policies, terms and conditions, privacy policies, and purchase or rental agreements. It emphasizes the importance of fairness in standard form contracts and the need to avoid imbalances in rights and responsibilities between businesses and consumers.
Infographic titled "Consumers Should Be on the Lookout for Unfair Contract Terms," illustrating examples of unfair provisions such as unclear or overly complex terms, automatic renewals with unreasonable notice periods, and clauses excluding seller liability for harm. A symbolic scale with documents and coins represents contractual imbalance. The infographic advises consumers to seek clarification, request revisions, or consult relevant authorities when encountering such terms.
Infographic titled "Businesses Should Prepare Fair Contract," highlighting that unfair contracts may be unenforceable under consumer protection laws. It advises businesses to ensure accurate and transparent information, adequate liability scope, and appropriate dispute resolution. The image features a torn contract illustration and icons representing key contract principles, with the ASEAN logo in the top right corner.
Promotional graphic for the ASEAN Guidelines on Unfair Contract Terms (UCT), featuring a booklet cover with illustrations of people discussing contracts, a QR code, and the ASEAN logo. The image highlights key components of the guidelines including principles, international practices, regulatory developments, and enforcement approaches. An illustration at the bottom depicts individuals examining documents with magnifying glasses and scales of justice.

Ensuring Fairness in Consumer Agreements Across ASEAN

Unfair Contract Terms (UCTs) are provisions in consumer contracts that may significantly disadvantage individuals by limiting their rights, increasing their liabilities, or reducing their legal protections. These terms are often embedded in standard form contracts and may not be immediately apparent.

If identified, UCTs may be deemed legally unenforceable under consumer protection laws. Regulatory authorities across ASEAN are committed to promoting transparency and fairness in contractual relationships and are actively working to address such practices.

Consumers are encouraged to:

  • Review all contract terms thoroughly before agreeing
  • Seek clarification on any clause that appears unclear or restrictive
  • Report potentially unfair terms to the appropriate consumer protection agency
  • Stay informed about their rights under national and regional consumer laws

To assist consumers in identifying and understanding UCTs, an educational video is available at the following link:

This resource provides practical guidance on recognizing and responding to unfair terms in contracts.

#ASEAN #ConsumerProtection #FairContracts #UCT #StayInformed #EmpowerYourself ♦

Date of Release: 31 July 2025