Rights Against Price Increase Clauses in Online Purchases

Online shopping has many benefits, but price increase clauses in terms and conditions can create uncertainty. These clauses can allow a trader to change the price after you enter a contract, sometimes without notice or an explicit right for you to cancel. Under consumer protection law in England and Wales, you have legal rights and protections that govern how prices can be varied and when such clauses may be unenforceable or subject to challenge. This guide explains those rights, how the law treats price variation terms, and practical steps you can take when faced with unexpected price increases. 

Why Price Increase Clauses Matter

When you make an online purchase, the contract usually includes a total price for the goods, services or digital content. Sometimes, standard terms include clauses allowing the trader to increase the price after the contract has been formed. Without clear limits, these clauses can put consumers at a disadvantage, particularly if:

• the increase is significant,
• you are unable to cancel without penalty,
• the increase was not clearly disclosed before purchase. 

UK law recognises that terms allowing a trader to unilaterally vary the price after the consumer is bound can be unfair and therefore unenforceable. 

Legal Framework: Consumer Rights Act 2015

The Fairness Test

The Consumer Rights Act 2015 (CRA 2015) governs unfair contract terms in consumer contracts. A term can be unfair if it is contrary to the requirement of good faith and causes a significant imbalance between the rights and obligations of the trader and the consumer. 

The law specifically identifies price variation clauses as potentially unfair if they allow a trader to vary the price without:

• a clear mechanism for doing so,
• adequate notice before the variation takes effect, and
• giving the consumer the right to end the contract if the price change is unfavourable. 

Under Schedule 2 of the CRA 2015, terms that give the trader the discretion to determine the price after you are bound by the contract, where no method of price determination is agreed, are among those that can be considered unfair. 

Transparency and Prominence

The law also requires that terms relating to price must be transparent and prominent. If a price increase clause is hidden in fine print or was not clearly brought to your attention before you agreed to the contract, it is more likely to be judged unfair. 

What Makes a Price Increase Clause Unfair?

Lack of Clear Mechanism

A term that simply says the trader may increase the price at any time, without specifying:

• when increases may occur,
• by how much,
• or the basis for any variation,
  is highly likely to be considered unfair under the CRA 2015. 

No Cancellation Right

Clauses that allow a trader to increase prices without giving the consumer the right to cancel the contract or void the agreement in response to a significant increase may be unfair. The law expressly regards such terms with suspicion because they can leave consumers “captive” to a higher price with no penalty‑free exit. 

Poor Disclosure

If you were not made aware of the possibility of a price increase before entering the contract, and the term was not presented in clear, prominent language, this weakens the trader's position and strengthens your own challenge. 

Examples of Potentially Unfair Price Increase Clauses

Example 1: Open‑Ended Variation
A clause that states “we may increase the price at any time” without specifying circumstances, limits, or notice is likely unfair under CRA 2015 because it gives the trader unfettered discretion. 

Example 2: No Cancellation Right
A subscription contract that increases the monthly fee without allowing you to cancel without penalty may be seen as causing a significant imbalance. The law suggests that if a trader reserves the right to raise the price, you should have a corresponding right to terminate the contract. 

Example 3: Hidden Increase Terms
If a price variation term is buried in dense text and was not clearly disclosed when you agreed to the contract, regulators and tribunals are more likely to find it unfair and unenforceable. 

Practical Steps to Challenge a Price Increase Clause

1. Review the Contract Terms Carefully

Start by reading the relevant terms and conditions, paying particular attention to:

• how price increases are described,
• whether a method for calculating increases is set out,
• any required notice periods for changes,
• whether you have an express right to terminate if prices rise.

If the clause is vague or open‑ended, this may support a challenge under the CRA 2015. 

2. Write a Formal Complaint to the Trader

If you believe the clause is unfair or has been applied unfairly:

• send a formal complaint in writing to the trader,
• explain why you consider the price increase clause unclear, unfair, or improperly applied,
• reference relevant consumer law, including the CRA 2015 unfair terms provisions.

Keep copies of all correspondence.

3. Escalate to Trading Standards or the CMA

If the trader refuses to address your complaint:

• you can report the issue to Trading Standards via your local authority,
• or to the Competition and Markets Authority (CMA), which enforces consumer protection legislation.

Regulators have the power to investigate and take enforcement action if widespread unfair terms are used. 

4. Consider Legal Action

If informal steps do not resolve the dispute, you may pursue a claim in the county court or through a tribunal. A court may declare the term unfair and unenforceable, and may order compensation or a refund of excess charges.

Before taking legal action, gathering strong evidence - such as screenshots, correspondence, and copies of terms - strengthens your case.

Time Limits and Practical Issues

There is no specific “cooling‑off” period for challenging an unfair term, but contractual and statutory limitation periods apply to claims. For most breach‑of‑contract or unfair term claims, the limitation period is six years from the date of breach. Acting promptly after a price increase is therefore important.

Price variation clauses that were transparent from the outset and agreed explicitly may still be enforceable if they meet the fairness and clarity requirements. However, clauses that allow arbitrary or unbounded increases or that leave you unable to exit without penalty are at higher risk of challenge. 

Common Questions About Price Increase Clauses

Can a trader increase prices mid‑contract if I agreed to it?
If the contract clearly and transparently set out the circumstances, limits and notice requirements for price increases, and you agreed before entering the contract, the increase may be enforceable. However, the term must pass the fairness test under the CRA 2015. 

Is every price increase clause unfair?
No. A clause that clearly describes how price variations will work - for example, linking increases to an external index with limits and notice requirements - may be fair and enforceable if you were made aware of it before agreeing. 

What if the price increase relates to taxes or statutory changes?
Clauses that allow increases to reflect changes in law, taxes or duties may be more likely to be considered fair if they are clearly defined and disclosed before you enter the contract. 

Key Takeaways

Under consumer protection law in England and Wales, price increase clauses in online purchase contracts are subject to the fairness requirements of the Consumer Rights Act 2015. Terms allowing a trader to vary the price after you are bound by the contract must be transparent, specific, and accompanied by appropriate notice and cancellation rights. If a clause is vague, allows arbitrary increases or leaves you unable to exit, it may be unfair and unenforceable. Consumers can challenge such clauses by reviewing contract terms, submitting formal complaints, reporting to Trading Standards or the Competition and Markets Authority, and pursuing legal action where necessary. Acting promptly and documenting evidence will help protect your rights against unlawful price variations.