Are terms that unilaterally harm consumer interests enforceable?

What the Law Says

Japan’s Consumer Contract Act prohibits businesses from imposing contract terms that unfairly disadvantage consumers.

The Consumer Contract Act (Act No. 61 of 2000) aims to protect consumers in contracts with businesses. It declares certain types of terms void if they unreasonably harm consumer interests.

Section 10 lists specific examples of void terms — including those that exempt a business from liability for damages caused by its own negligence, or that impose excessive penalties on consumers.

The law applies to any contract where one party is a consumer (an individual acting for personal purposes) and the other is a business operator.

Statutory Text

The following provisions of a consumer contract shall be void: (i) a provision that exempts the business operator from liability for loss or damage suffered by the consumer due to the business operator’s failure to perform its obligations; (ii) a provision that imposes on the consumer an excessively high amount of liquidated damages or penalty...

— Consumer Contract Act, s. 10 — Void Provisions

Statutory Text

A provision of a consumer contract that unreasonably harms the interests of the consumer shall be void.

— Consumer Contract Act, s. 7 — Unreasonable Harm

What to Do

Sources