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Through the so-called reflex effect, a small business or self-employed professional can sometimes benefit from protective consumer regulations. Although these rules formally apply to consumers, a small business owner whose position resembles that of a consumer can, under certain circumstances, still invoke them.
Consumers enjoy extra protection
The law provides consumers with additional protection: they are entitled to the statutory guarantee (conformity), a right of withdrawal for online purchases, and protection against unreasonably burdensome terms via the black and grey lists. Companies do not, in principle, have this protection; there is greater contractual freedom between entrepreneurs.
What is reflex action?
The reflex effect means that protective consumer rules 'continue to work' under certain circumstances in favor of a small business owner. A self-employed professional or small business that, given its position and expertise, strongly resembles a consumer — for example, when making a purchase outside its actual field of expertise — can sometimes still invoke that protection.
When does it take place?
The principle of reflex effect is particularly relevant when assessing general terms and conditions: an unreasonably onerous clause that would fail against a consumer can also fail against a small business owner through the reflex effect. Whether this succeeds depends on the circumstances, such as the size of the business and the nature of the transaction.
What does this mean for you?
When drafting terms and conditions, do not simply assume that you can do whatever is possible between large companies with regard to small business owners. If you are a small business owner facing an unreasonable clause, the principle of reflexive action can help you. A balanced set of conditions prevents surprises on both sides.
Frequently Asked Questions
Does consumer law also apply to my small business?
Not directly, but through a ripple effect, the protective rules can under certain circumstances have an effect if your position resembles that of a consumer.
When does the reflex effect come into play?
Especially when reviewing general terms and conditions: an unreasonably onerous clause can fail even against a small business owner.
What does it depend on?
Of the circumstances, such as the size and expertise of the company and the nature of the transaction.
Are your terms and conditions balanced and strong?
Our legal experts draft general terms and conditions that withstand the test of time, and perform a general terms and conditions scan. View our contract lawteam or schedule a free consultation.
