Abusive Clauses ' New Rules And A Control Commission

• Published date: 15 January 2024
• Subject Matter: Corporate/Commercial Law, Consumer Protection, Litigation, Mediation & Arbitration, Contracts and Commercial Law, Arbitration & Dispute Resolution, Dodd-Frank, Consumer Protection Act
• Law Firm: PLMJ
• Author: Mr PLMJ

In order to implement the administrative system for the control and prevention of unfair contract terms established by Law 32/2021 of 27 May, Decree-Law 123/2023 of 26 December establishes the General Contract Terms Commission (the "Commission"). Decree-Law 123/2023 entered into force on the day immediately following its publication, i.e., 27 December 2023.

The Commission is an independent administrative body of an advisory nature. It will work closely with the members of the Government responsible for justice and consumer protection and will be operational 90 days after the entry into force of the Decree-Law. The Commission will have residual powers, mainly in areas of activity not covered by legislation providing for such control. This will enable it to reduce disparities between sectors and increase consumer protection in the face of the proliferation of contracts containing general contractual clauses.

Decree-Law 123/2023 also establishes the principle of cooperation between the Commission and the competent regulatory and market control bodies for specific sectors. The aim of this cooperation is to draw up standard contracts for voluntary use in regulated sectors or sectors subject to specific legislation, in accordance with the provisions of the legal framework for general contractual clauses.

The various tasks carried out by the Commission include:

• analysing contracts containing general...