On 12 January 2023, the Court of Justice of the European Union (ECJ) handed down its decision in case C-395/21 concerning the interpretation of Directive (EEC) No. 93/13 of 5 April 1993 on unfair terms in consumer contracts. The question referred to the ECJ was whether the provision in a contract between the lawyer and the consumer whereby the fees will be calculated on the basis of an hourly rate satisfies the requirement of Directive No. 93/13 on plain intelligible language. The ECJ held that a contractual term which sets the price on the basis of an hourly rate does not meet the requirement of transparency imposed by Directive No. 93/13 if the relevant consumer is not provided in advance with pieces of information that enable him or her to take a decision fully aware of the economic consequences deriving from the conclusion of such contract. The Court thus observed that the referring national court is under an obligation to disapply terms providing for hourly rates if, lacking further information, they are found to be unfair according to the Directive.
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