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ARTICLE · 18 JUNE 2021

Australian Consumer Law – does statutory unconscionable conduct require some vulnerability or disadvantage?

Cooper Grace Ward
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Vulnerability or disadvantage is not necessary to establish that a party engaged in statutory unconscionable conduct.

AustraliaConsumer Protection
Rocco Russo
Rocco Russo
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On 19 March 2021, the Full Court of the Federal Court of Australia handed down its decision in Australian Competition and Consumer Commission v Quantum Housing Group Pty Ltd [2021] FCAFC 40 (ACCC v Quantum), finding that, while exploitation of some vulnerability or disadvantage will often be a feature of unconscionable conduct, such conduct is not necessary in order to establish that a party has engaged in statutory unconscionable conduct.

What is statutory unconscionable conduct?

Section 21 of the Australian Consumer Law (ACL) provides that parties, must not, in trade or commerce, in connection with the supply or acquisition of goods or services, engage in conduct that is, in all the circumstances unconscionable. This is often called 'statutory unconscionable conduct'.

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