ACCC signals intention to take enforcement action over unfair contract terms

On 14 March 2013, the Australian Competition and Consumer Commission (ACCC) issued its report on the outcomes of its industry review into unfair contract terms and signalled its intention to take enforcement action against those businesses whose standard form consumer contracts contain unfair terms.

What is the prohibition on unfair contract terms?

Section 23 of the Australian Consumer Law (Schedule 2 to the Competition and Consumer Act 2010 (Cth) (ACL) prohibits terms of a standard form consumer contract which are unfair. This prohibition on unfair terms applies only to standard form contracts with individual consumers for goods, services or the sale or grant of interests in land, which are for personal, domestic or household use or consumption. It doesn't apply to: