Unfair Contract Terms
Useful for: Business, Government, Local Government, Not for Profit
In Brief
- The Australian Consumer Law regulates the use of standard form contracts with consumers and small businesses via the Unfair Contract Terms regime. A standard form contract is essentially a consumer contract or small business standard contract given to the customer to accept on a “take or leave” basis, or that contains terms that may result in a consumer or small business being unfairly dealt with by another party to a standard form contract.
- From November 2023 it is unlawful to propose, insert or rely on unfair terms in Consumer Contracts and Small Business Standard Contracts. This means that a business can be penalised for proposing or entering into unfair terms in contracts, regardless of whether a purchaser had been harmed by those terms.
- The ACL binds State and Territory Governments and their authorities to the extent that they are carrying on a business.
- More detailed information and publications about consumer guarantees, unfair contract terms and other aspects of the Australian Consumer Law can be found on the Australian Competition and Consumer Commission website.
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