Find out how ACCC’s consumer law is protecting small businesses…
https://www.business.gov.au/news/safeguard-your-business-from-unfair-contracts Last updated: 7 April 2017
Ensuring all small businesses are protected under the unfair contract law is a priority for the Australian Consumer and Competition Commission (ACCC) in 2017.
ACCC has announced increased scrutiny on unfair contracts and is investigating a range of industries since the introduction of the new business-to-business (B2B) unfair contract terms laws in November 2016.
What is the unfair contract law?
Under the law, small businesses are able to have an unfair term in a contract declared void by a court if at the time of agreeing to a standard form contract:
- you had less than 20 employees
- the contract wasn’t for more than $300,000 (or $1 million for contracts longer than 12 months).
What is an unfair contract term?
Unfair terms are terms that let one party but not the other:
- avoid or limit their obligations under the contract
- terminate the contract
- vary the terms of the contract
- be penalised for breaching or terminating the contract.
Only a court or tribunal can decide that a term is unfair.
Find out more
- For more information about the laws on unfair contract terms check out the ACCC website.
- If you have further questions or have come across an unfair term in a standard form contract that you have been offered or entered into you can contact the ACCC.
- Read our Understanding contracts information.
