Safeguard your business from unfair contracts

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