Who will this affect?
- all businesses that use standard form, non-negotiated
contracts
- all businesses that transact with consumers, including those in
the financial services industry
Key changes
- unfair contract terms to be void from 1 January 2010
- increased enforcement powers for state-based consumer
regulators and the ACCC
- a consistent national approach to consumer protection law
As reported in our commercial law ealert on 23 February 2009, a
major aim of the Rudd Government's proposed new Australian
Consumer Law is to "crack down" on unfair contracts.
On 11 May 2009, the Assistant Treasurer Chris Bowen released the
draft national unfair contract terms provision for public comment.
The provision is proposed to be enacted as Schedule 2 to the
Trade Practices Act 1974 (entitled The Australian Consumer
Law), and as new sections 12BA-12BK to the Australian
Securities and Investments Commission Act 2001 (to bring
financial services
