Considers the CA ruling "R (on the application of Khatun) v Newham London Borough Council" ([2004] EWCA Civ 55, Abs67534), which confirmed that public sector tenants are as protected as private sector tenants by the unfair contract terms regulations. This supports the view of OFT, the lead regulator enforcing the regulations, who joined in the proceedings as an interested party. The Unfair Terms in Consumer Contracts Regulations 1999 SI 1999: 2083 transposes the requirements of Directive 93/13/EEC into UK law. Looks at the key issues of the "Khatun" case including the applicability of the Directive and the regulations to the council's terms, the nature of and the consequences of an unfair term. Provides a selection of examples of unfair terms in tenancy agreements. Concludes that those who use or supply standard, pre-formulated tenancy agreements must consider their terms and conditions and remove any unfair terms.