Taking out the trash: ACCC brings first unfair contract terms case

The case is a reminder to businesses to take particular care to review the terms of their standard form B2B contracts and assess whether the terms can be justified as reasonable before imposing them on small businesses.

Using new laws that protect small businesses from unfair contract terms the Australian Competition and Consumer Commission (ACCC) has taken action in the Federal Court against JJ Richard & Sons Pty Ltd.

The case is the first of its kind and serves as a warning to large businesses to review their standard form contracts with small businesses and consider revising any clauses that may otherwise risk being rendered void and unenforceable if challenged as "unfair" under the unfair contract laws.