ACCC acts on unfair contract terms

Introduction

The Australian Competition and Consumer Commission (ACCC) has exercised its powers for the first time to take action against a business that it considers has sought to enforce unfair contract terms. Two recent cases – one in Australia and one in the UK - shed light on the types of contract terms that may be likely to attract regulatory attention.

Recap of the "unfair contract terms" law

A national regime prohibiting the enforcement of "unfair contract terms" in standard form contracts was introduced in July 2010. The regime is contained in The Australian Consumer Law (ACL), Schedule 2 to the Competition and Consumer Act 2010 (Cth) and applies to all standard form contracts entered into on or after 1 July 2010.