The Financial Services (Distance Marketing) Regulations 2004

Amendment of the Unfair Terms in Consumer Contracts Regulations 1999

24.—(1) The Unfair Terms in Consumer Contracts Regulations 1999(1) are amended as follows.

(2) After regulation 3(1) (interpretation), insert—

“(1A) The references—

(a) in regulation 4(1) to a seller or a supplier, and

(b) in regulation 8(1) to a seller or supplier,

include references to a distance supplier and to an intermediary.

(1B) In paragraph (1A) and regulation 5(6)—

“distance supplier” means—

(a)

a supplier under a distance contract within the meaning of the Financial Services (Distance Marketing) Regulations 2004, or

(b)

a supplier of unsolicited financial services within regulation 15 of those Regulations; and

“intermediary” has the same meaning as in those Regulations.”.

(3) After regulation 5(5) (unfair terms), insert—

“(6) Any contractual term providing that a consumer bears the burden of proof in respect of showing whether a distance supplier or an intermediary complied with any or all of the obligations placed upon him resulting from the Directive and any rule or enactment implementing it shall always be regarded as unfair.

(7) In paragraph (6)—

“the Directive” means Directive 2002/65/EC of the European Parliament and of the Council of 23 September 2002 concerning the distance marketing of consumer financial services and amending Council Directive 90/619/EEC and Directives 97/7/EC and 98/27/EC; and

“rule” means a rule made by the Financial Services Authority under the Financial Services and Markets Act 2000 or by a designated professional body within the meaning of section 326(2) of that Act.”.

(1)

S.I. 1999/2083, amended by S.I. 2001/1186 and S.I. 2003/3182.