On 24 September, the Court of Justice of the European Union delivered its judgment in Case C-900/24 concerning a long-term district heating supply contract. The supplier adjusted the price annually and later unilaterally changed the price-calculation term during the contract.
The customer challenged the increases and sought repayment of amounts paid. The proceedings raised the question whether a contract containing an unfair term could continue to produce effects because the customer had not challenged the price increases within three years.
The Court held that EU consumer protection rules preclude that approach. The passage of time cannot by itself give binding effect to an unfair term. The national court must assess the term, the circumstances in which the contract was concluded and the consequences of its application.
The judgment matters for long-term consumer contracts containing indexation formulas, unilateral price changes or unclear calculation criteria. A specific claim will still depend on the contract wording, the status of the parties, limitation periods and national rules governing the consequences of an unfair term.
If your contract contains a unilateral price change or an unclear calculation formula, we can review the term, how it has been applied and the basis for a specific claim.
Contact us