This website uses cookies primarily for visitor analytics. Certain pages will ask you to fill in contact details to receive additional information. On these pages you have the option of having the site log your details for future visits. Indicating you want the site to remember your details will place a cookie on your device. To view our full cookie policy, please click here. You can also view it at any time by going to our Contact Us page.

Cost of 'unfair' contract terms revealed by FSB

22 August 2016

Research conducted by the Federation of Small Businesses (FSB) shows that 52% of small companies have been affected by unfair contract terms.

FSB says this also shows that the issue has cost them nearly £4bn over the last three years.

Further analysis shows that 40% of respondents feel powerless to challenge unfair contracts due to the supplier being too important or powerful.

The FSB said this shows that small businesses can be as vulnerable as consumers purchasing goods and services, further stating that SMEs need better protection.

Around 2.8m small firms have been adversely affected by unfair contract terms, said the FSB within its Treating Smaller Businesses Like Consumers - Unfair Contract Terms.

Issues highlighted by the survey show that suppliers are failing to make auto-roller clauses clear up front, according to 24% of respondents.

A further 22% said they were tied into lengthy notice periods, with another 20% saying they were charged high early termination fees.

Another 20% of respondents said they had been affected by details concealed in the small print of contracts.

FSB national chairman Mike Cherry said: "Small firms on the bad end of a deal are losing out to the tun of £1.3bn each year.

"We have identified persistent problems with suppliers, across sectors, treating small firms unfairly.

"This suggests the market is failing to deliver value for money products and services for small business customers."

Print this page | E-mail this page


Article image Chequers Chosen for Parliamentary Review

Chequers Contract Services have contributed their knowledge and experience to the 2017 Parliamentary Review, in the Construction and Engineering Edition.Full Story...

Article image Steering a route to better mobile working

Industry experts respond to PFM’s question on how mobile working has changed FM in recent yearsFull Story...

PFM Awards 2017 finalists announced

Concerns raised over data protection update

Importance of interior design emphasised by new global operations centre