Protecting the interest of students
The Office for Students has published consumer rights case reports after the referral of three higher education providers to National Trading Standards over concerns of student contract clauses breaching Part 2 of the Consumer Rights Act 2015.
The reports are a reminder to registered providers of the importance of complying with the OfS C conditions around protecting the interests of students. They also highlight the partnership between the OfS and NTS and its role in helping to ensure that student contracts (and complaints processes) are legally compliant by being understandable, fair, transparent and accessible.
Whilst only a court can determine whether consumer protection law has been breached, NTS is able to provide expert advice and, if necessary, take enforcement action.
In these recent cases, concerns were raised about clauses which:
- Could undermine a provider’s own contractual obligations
- Limit liability
- Provide broad discretion, without appropriate explanation, to make significant changes, such as increasing course costs or applying charges to students who experience payment or visa issues
As all of the providers involved acted on the NTS advice and made changes, no enforcement or regulatory action resulted.
Had that not been the case, NTS may have sought an undertaking, issued a formal warning or applied to court for an enforcement order.
More broadly, the OfS has identified the following key issues to consider when reviewing terms and conditions:
- Are there limitations placed on refunds or compensation you could be eligible for?
- Are the examples used in the contract clear and reasonable?
- Is it clear what actions the provider would take if something went wrong?
- Would the terms and conditions in the contract override other information the provider may send to you?
- Is it clear why and how costs, such as tuition fees, may increase?
The case studies (which can be accessed here) should be read alongside the Competition and Markets Authority consumer law guidance for higher education providers updated earlier this year.
The OfS has also provided examples of terms and conditions which have been considered to be potentially in breach of consumer law following an NTS assessment. These focus on limiting liability, delivery and disruption, fees and amendments to contractual terms. Further information can be accessed here.
Whilst providers are already likely to be considering these issues when updating their terms and conditions, the reports serve as a helpful indication of key priorities from a regulatory perspective.