4.4. Restitution of advantages obtained through unfair contract terms

Another consequence of the non-binding character of unfair contract terms is that, where consumers have made payments based on unfair contract terms, they must be entitled to the reimbursement of such payments (330): Only provisions related to legal certainty, in particular res judicata and reasonable limitation periods, may limit such restitutory effect (331). At the same time, Member States, including national legislators and courts, may not limit in time the effect of a finding that a given contract term is unfair (332) and thereby, for instance, exclude restitution claims for the time prior to such finding (333): In this connection, the Court recalled that it is for the Court alone, in the light of the fundamental requirement of a general and uniform application of EU law, to decide upon the temporal limitations to be placed on the interpretation it lays down in respect of a rule of EU law (334). In general, the interpretation given by the Court of a rule of EU law must be applied by the national courts also to legal relationships arising and established before the Court's judgment since its interpretation establishes how the relevant rule must be, or ought to have been, understood and applied from the time of its entry into force (335). Therefore, the Court may limit the effect in time of its rulings only in ‘altogether exceptional cases’ in application of the general principle of legal certainty if two cumulative conditions are met: (i) the market participants concerned have acted in good faith and (ii) there is a risk of serious difficulties due to the ‘retroactive’ application of the Court's case law (336).

← sec_4_3_4__para · All articles · sec_4_4__para →

Source: EUR-Lex (Cellar) · retrieved 2026-09-25 · Text as adopted (Official Journal); later amendments are not incorporated in this text.