National Unfair Contract Terms Provisions – Consultation Paper Released For Public Comment

Article by Alison Deitz and Phillip Kong

On 11 May 2009, the Australian Federal Government released for public comment its consultation paper on draft national unfair contract terms provisions entitled "The Australian Consumer Law – Consultation on draft provisions on unfair contract terms".

The draft legislation is released following from the Productivity Commission's Review of Australia's Consumer Policy Framework in May 2008 and the subsequent Council of Australian Governments (COAG) agreement to implement a single national consumer law in October 2008. It is proposed that the new national consumer law be called the Australian Consumer Law. One of the changes under the Australian Consumer Law is to include provisions which regulate unfair terms in standard contracts, including loan contracts, lease contracts and finance broking contracts. A copy of the consultation paper can be accessed from the Treasury's website.