Ashley & Martin – Unfair contract terms in consumer contracts

In the decision of ACCC v Ashley & Martin Pty Ltd [2019] FCA 1436, the Federal Court held that the terms in three Ashley & Martin Pty Ltd (Ashley & Martin) standard form contracts with consumers were unfair within the meaning of section 24 of the Australia Consumer Law as set out in Schedule 2 of the Competition and Consumer Act 2010 (Cth) (ACL), and therefore void and unenforceable pursuant to section 23 of the ACL. The use of unfair contract terms in consumer or small business contracts is prohibited by section 23(1)(a) of the ACL. The unfair contract terms regime aims to protect consumers and small businesses from terms and conditions in standard form contracts that are not adequately disclosed and are often offered on a "take it or leave it" basis. As discussed in our article, Government to strengthen unfair contract terms protections the Government has committed to strengthening these protections.