The Wild Arbitration Blows Retreat? On Implementation of the Unfair Contract Terms Directive in the Czech Republic

Abstract

The EU Directive on unfair contract terms in consumer contracts (97/13/EEC) as a minimum harmonisation directive left Member States free to set up more intensive measures to protect consumers. However, the Czech Republic, stopping at the minimum level, allowed aggressive traders to incorporate in their form contracts arbitration clauses, which have led to a massive abuse of weak judicial control to the disadvantage of consumers. This paper focuses on the case-law of European Court of Justice on arbitration clauses in consumer contracts and its problematic implementation within Czech legal order as well as a welcomed recent shift in practice of lower Czech municipal courts.

Keywords: Consumer, Arbitration, Unfair Contract Terms

JEL Classification: K12, K41, K42