ACCC prosecutions in relation to unfair contracts

Key Takeaways for business owners

• The expanding unfair contracts provisions within the Australian Consumer Law are now clearly being enforced by the ACCC - and in the appropriate cases, the ACCC is commencing prosecutions.
• Businesses relying on standard contract and franchise agreements must be careful when drafting their contracts, in order to account for the terms of the franchising law and the ACL.
• Businesses must also bring a robust position to deal with any claims by the ACCC or consumers, business consumers, and the franchisees, when dealing with the disputes.

Introduction

The Federal Court has recently delivered several decisions which must give corporations engaged in retail and financial services some pause for thought - especially in relation to their preparation of standard contract terms and conditions.