Your contract says £50. The company now says it's £65. Whether that's actually allowed depends on exactly what the variation clause says — and whether it says enough.
A variation clause has to earn its exemption from the fairness test
A term letting a business change the contract is itself a term subject to the Consumer Rights Act 2015's fairness test — it doesn't get a free pass just because both parties technically agreed to allow future changes at signing. Official guidance treats variation clauses as a recurring category of concern precisely because they hand the business ongoing, open-ended power the consumer doesn't get in return.
What separates a fair variation clause from an unfair one
- A valid reason must be specified. A vague "we may change these terms at any time for any reason" is far more exposed than a clause naming specific, legitimate grounds (cost increases, regulatory changes)
- The consumer needs a real way out. A fair variation clause typically gives the consumer the right to exit the contract without penalty if they don't accept a material change — a clause that locks the consumer in regardless is much harder to defend
- Notice has to be genuine, not buried. Consistent with the transparency and prominence requirements covered elsewhere in the Act, a change hidden in a long email or a quiet policy update page is weaker than a clear, direct notification
Price changes get particular scrutiny
Price terms are only exempt from the general fairness test if transparent and prominent at the time of signing — a variation clause that later lets the business increase that price still has to justify itself as fair on its own terms. A jump from £50 to £65 with no stated reason, insufficient notice, and no exit right stacks multiple weaknesses at once, each of which independently increases the chance the clause (or its use in this instance) would be found unfair.
How to check your specific situation
- Find the exact variation/amendment clause in your original contract and quote it precisely.
- Check whether it specifies a valid reason for this type of change, or reads as open-ended.
- Check whether you were given the right to cancel penalty-free if you don't accept the new terms.
- Check how the change was actually communicated to you — a direct, clear notice is a stronger position for the business than a quiet update.
- If several of these elements are missing, you have a real basis to challenge the specific increase, not just complain about it.
What this means practically
- A variation clause existing in your contract doesn't automatically make every future change enforceable — it's assessed for fairness like any other term.
- The strongest fair variation clauses name a specific reason and give you a penalty-free exit if you don't accept the change.
- Price changes specifically require the same transparency and prominence standard as the original price term.
- A change made with a vague justification, poor notice, and no exit option is a strong candidate for a formal challenge.
Sources
- UK Government — Unfair Contract Terms Guidance (CMA37), variation clauses: assets.publishing.service.gov.uk
Related Kibbo Tools
- Contract Amendment Checklist — verify what's actually changing, and whether the change follows a fair process, before accepting it.
- Contract & Demand Letter Generator — challenge a price or term change formally in writing.