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Small businesses lose billions due to unfair contract terms

Over half of small firms have been subject to unfair contract terms with suppliers, costing almost £4 billion in the last three years

New research from the Federation of Small Businesses (FSB) suggests suppliers are failing to make auto-rollover clauses clear up front (24 percent), tying businesses into lengthy notice periods (22 percent), charging high early termination fees (20 percent) and concealing details in small print (20 percent).

Two in five (40 percent) respondents said they felt powerless to do anything about unfair contract terms because the supplier was too important or powerful to challenge.

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