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OFT ruling on Foxtons sets precedent for services

Published on 23 Feb 2010 under category: legal

Letting agents may no longer be able to use certain terms in their sales and commissions for clients, following an OFT high court order.

The Office of Fair Trading has secured an order against Foxtons Ltd for making landlords pay commission if tenants either buy the property or if the tenant remains in the property, after it is sold to another individual.

The standards body plans to make an example of the case by alerting letting agents across the UK to the decision.

Jason Freeman, legal director of the standards body's consumer group said: "We welcome the finality brought by this order and the court's declaration that the terms we challenged are indeed unfair.

"This case, and the changes Foxtons has now made, sends a wider message to letting agents and businesses in general that important terms, particularly those which may disadvantage consumers, must be clear, prominent and actively brought to people's attention. Consumers should not be presented with a surprise bill for services they have not consciously agreed to."

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