CJEU's Preliminary Ruling On Exemption Under Unfair Terms Directive

Introduction

On 20 March, the CJEU published its preliminary ruling regarding how the Directive on unfair terms in consumer contracts (Council Directive 93/13/EEC) (the "Directive") applies to the facts of a dispute regarding a revenue share agreement with a rising sports star.

The ruling provides helpful new detail and clarity on the EU law requirement that even 'core contract terms' (eg, pricing terms), which benefit from an exemption under the Directive, must be in "plain, intelligible language". While Irish law on this point is already more detailed than EU law, by virtue of the transparency requirement included in the 2022 Consumer Rights Act, this ruling is a helpful legal authority for practitioners which may be relied on in interpreting requirements under the 2022 Act.