What is the significance of 'conspicuous' for unfair terms in consumer contracts?

The significance of 'conspicuous' in the context of unfair terms in consumer contracts lies in its requirement for clarity and visibility of contract terms to ensure that consumers are adequately informed. In New Zealand consumer law, terms that are deemed 'conspicuous' must be presented in a manner that consumers can easily notice and understand, which plays a crucial role in determining whether they are aware of their rights and obligations under the contract. An unfair term that is not clearly displayed may not be enforceable, as consumers could reasonably argue that they were not adequately informed about the terms that fundamentally impact their rights.

Ensuring that terms are conspicuous helps to promote fairness in contractual dealings. It places the onus on the supplier or service provider to present important terms in a way that consumers cannot overlook. This approach seeks to protect consumers from being bound by obscure or hidden terms that could be detrimental or unfair, as consumers might not be aware of such terms when entering into a contract.

The idea that conspicuous terms are always enforceable regardless of fairness or that hidden terms are valid negates the very principle of consumer protection, as these scenarios could allow unfair terms to remain hidden from the consumer. Similarly, stating that 'conspicuous' has no meaning in contract law