Trading Standards referrals see terms in student contracts changed at three higher education providers

Terms that were considered to be unfair have now been removed or changed by the University of Manchester, ICON College of Technology and Management and London Bridge Business Academy. Trading Standards advised the OfS that terms used by the providers caused a significant imbalance in the rights and obligations of the provider and its students, which caused detriment to students. Some terms were not written in plain language and some were not transparent, as is required in law.  

The referrals came following the agreement of a partnership between the OfS and National Trading Standards which means that National Trading Standards will examine each notification it receives from the OfS about a potential breach of consumer protection legislation.

At the University of Manchester, the OfS identified terms and conditions in its enrolment contract with students that were likely to be unfair and to compromise their consumer rights. These terms sought to limit the university’s liability, for example in scenarios where university staff were on strike – despite consumer law still applying during industrial action. The terms also gave the university a broad discretion to increase fees over the duration of the course with no reference to how any increases would be made and whether students could terminate their contracts if the price was too high, although the university told us it has never relied on or enforced this term. The OfS also identified a term that set out how students might be treated if courses were oversubscribed which was vague and open to more than one interpretation.

In response to advice from National Trading Standards, the University of Manchester has taken action to remove some terms and updated or narrowed others.

At ICON College, the OfS had similar concerns about terms that appeared to limit the college’s liability and a condition that undermined the college’s contractual obligations to students. A condition that limited the college’s liability for issues arising from its IT systems and the Virtual Learning Environment was removed. The college told us it had never sought to rely on any of these terms.

In response to advice from National Trading Standards, ICON College has removed some terms and amended others.

At London Bridge Business Academy, the OfS had concerns about the unclear formatting of the document containing the college’s terms and conditions, which also included terminology that was not explained. The terms also included charges to students experiencing visa or payment issues which appeared disproportionate and potentially unfair, which the college told us it had not enforced.

In response to advice from National Trading Standards, London Bridge Business Academy has reformatted its document containing terms and conditions and removed or updated some terms.

Susan Lapworth, chief executive of the OfS, said:

'The contract between a student and their university must be fair and deliver the protections set out in consumer protection law. Where we have concerns that this is not the case, we use our partnership with National Trading Standards to seek changes to a university’s approach.

'The case reports we’ve published today show the success of this partnership. Three institutions have rectified terms in their student contracts that could be deemed unfair. Current and future students are better protected as a result.

'We’re publishing information about these cases – and details about the terms that caused our concerns – to prompt all universities and colleges to look again at the contracts they use. Students must be treated fairly in their contractual relationships with institutions, and we will continue to work with National Trading Standards where we think changes need to be made.'

Notes

1. Only a court can determine whether consumer protection law has been breached. The case reports set out work the OfS and Trading Standards have done to ensure providers’ student contracts do not contain terms that could be deemed unfair or to affect students’ consumer rights.
2. The University of Manchester and London Bridge Business Academy advised that they had not, in practice, sought to rely on or enforce a number of the terms and conditions identified as of concern by the OfS.