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ARTICLE · 14 OCTOBER 2016

Small businesses to get consumer protections

The consumer protections will soon be extended to protect small businesses contracting under a standard form contract.

AustraliaConsumer Protection

Are you a small business or have dealing with small businesses? Do you have or are you engaged under a standard form contract? Are you prepared for the new regime?

The extension seek to address the lack of bargaining power and vulnerability often faced by small businesses in contractual negotiations, where the more powerful contractor seeks to engage small businesses generally on a 'take it or leave it' basis.

Next month the protections currently provided to consumers under the Competition and Consumer Act 2010 (Cth) (the Act) will be extended to protect small businesses contracting under a standard form contract.

The new law will apply to:

  • standard form small business contracts that are entered into or renewed on or after 12 November 2016; and

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