Unfair contract terms

Under consumer protection law, a contract term is considered unfair if, contrary to the requirement of good faith, it creates a significant imbalance in the rights and obligations of the parties to the detriment of consumers. This may include terms that restrict consumers’ legal rights, impose disproportionate obligations or limit available remedies. In practice, such terms place consumers at a disadvantage in their dealings with traders.

Since 2012, the Authority has been responsible for enforcing the rules that protect consumers from unfair terms in contracts with traders. These rules are designed to ensure that consumer contracts are clear, fair and transparent, and that consumers are not bound to terms they have not genuinely agreed to or cannot reasonably influence.

To address unfair terms, we rely on two main tools. In doing so, we may consult the relevant regulators or supervisory bodies for the sectors concerned, as well as the national network of Chambers of Commerce, to ensure that our assessments are accurate and well informed.

Investigations into unfair terms

The Authority may investigate the use of unfair terms in consumer contracts to assess compliance with consumer protection rules. Investigations may be opened on the Authority’s own initiative or following a complaint.

Once an investigation is launched, we invite input from a wide range of stakeholders through a mandatory online consultation published on our website. This enables Chambers of Commerce, nationally recognised trade associations and consumer associations belonging to the National Council of Consumers and Users to provide their input.

Where the investigation confirms the presence of unfair terms, the Authority can step in to address their use and prevent harm to consumers.

Enforcement powers in this area were strengthened in 2023, when the fining regime for unfair commercial practices was extended to cover unfair contract terms, allowing the Authority to impose fines ranging from €5,000 to €10 million.

Ex ante assessment of unfair terms

Companies may seek early guidance from the Authority when planning to introduce new terms in consumer contracts. Through an ex ante assessment request, they can ask the Authority to review proposed terms in advance and clarify whether they are likely to be unfair under consumer protection law (Article 37-bis of the Italian Consumer Code).

To request an ex ante assessment, companies are required to submit a dedicated form. We normally complete our assessment within 120 days, although this time limit may be suspended or extended where additional information is required or where consultations are carried out.

This mechanism helps identify potentially unfair terms at an early stage and provides greater legal certainty for both traders and consumers.