Behavioral approach to unfair terms and conditions in EU consumer law

Abstract

Rational choice theory is still at the hearth of EU consumer law. In this paper I consider how this theory reflects on the unfair terms control mechanism set by the Unfair Contract Terms Directive. I identify most pressing problems in the field of unfair contract terms using the findings of behavioral psychology and behavioral economics. In search for possible solutions to these problems I will consult the relevant literature. Therefore, method I use here is a theoretical application of the behavioral findings. In conclusion I will assess which solutions are feasible and most desirable in a short term period, and which are the most effective but demand certain investments and time to become fully functional. Finally, I will conclude that behavioral approach to the issue of unfair contract terms and conditions is an important addition to the policing of unfair terms and conditions which could lead to the raise of overall quality of terms and conditions which is a significant step beyond the control of unfairness.