Survey shows just 7% of people read the full terms when buying a product or service online, while a fifth say they have suffered from not doing so

It is the important small print setting out our contractual rights, but latest research reveals just 7% of Britons read the online terms and conditions when signing up for products and services.

The research, commissioned by investment specialist Skandia, exposes how easy it is for people booking and paying for goods and services online to click the terms and conditions box without actually reading them in full.

Nearly six in 10 (58%) adults said they would rather read an instruction manual or their utility or credit card bill than go through online terms, and more than one in 10 (12%) would rather read the phone book. Meanwhile, 43% of those who don't always read the terms and conditions say they are boring or difficult to understand. But by failing to check the small print they are in the dark about their rights, until something goes wrong.

Just over a fifth (21%) of people surveyed said they had suffered as a result of ticking the terms and conditions box without having done their homework. One in 10 found themselves locked into a longer contract than expected because they signed up without reading the small print, and one in 20 lost money by not being able to cancel or amend hotel or holiday bookings.

Joanne Lezemore, senior lawyer at Which? Legal Service, said: "The advice is simple: always read the terms and conditions of any contract before you sign it.

"It is really important you understand everything before you sign on the dotted line, as you could find yourself landed with extra fees or charges. While all consumer contracts are subject to the unfair terms in consumer contract regulations, this doesn't mean you can challenge a clause just because you didn't know it was there, or you think it's unfair – because it's clearly written, you're bound by it."

She said online shoppers may be tempted to tick the box to confirm they have read the terms and conditions when they have not actually done so, but added: "They are different on every website, so make sure you know what you're agreeing to. People are often surprised to find out they're obliged to pay to return unwanted items purchased online, as it is commonly stated in the terms and conditions – and these fees can be expensive."

Skandia conducted the research to draw attention to changes made to the terms and conditions on all its financial products, and has signed up the broadcaster and comedian Clive Anderson to present its standard online terms to customers in a video.

Rachel Eyre got caught out after buying plane tickets online on 7 October 2010. "Having purchased the tickets, the travel company decided to refund my payment on 9 October stating that the flights were no longer available at the price I paid.

"The travel agent refused to supply the tickets or enter any resolution process despite many requests – referring me to their standard terms and conditions which they claim allow them to do this. I will always make sure I read terms and conditions now before signing up to anything."