CMA warns heating oil suppliers over cancelled orders and unfair contract terms

  • CMA warned domestic heating oil suppliers to review potentially unfair consumer contract terms.
  • Hundreds of intermediary-site customers were affected, and suppliers provided voluntary compensation after cancelled orders.
  • Consumer Rights Act 2015 provisions apply to written, verbal, negotiated and standard-form terms and notices.

The Competition and Markets Authority (CMA), the UK competition regulator, has issued an open letter reminding domestic heating oil suppliers that consumer contract terms must be fair and transparent. The intervention follows concerns that some suppliers cancelled orders as heating oil prices and demand surged after the conflict in the Middle East. The CMA secured voluntary compensation from suppliers after finding that hundreds of customers who ordered through an intermediary site were affected. The warning focuses particularly on exclusion and limitation clauses that seek to reduce or remove suppliers’ liability for delays or failures to perform contracts. Under the Consumer Rights Act 2015, unfair terms and notices are not binding on consumers, while the CMA and other authorities can take enforcement action that could result in financial penalties. The CMA said suppliers should review their terms and conditions, including provisions dealing with market disruption.

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