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ARTICLE · 29 NOVEMBER 2015

When too much unfairness is barely enough

As if the ACL "unfair contracts" provisions weren't exciting enough, they are now extended to small business dealings.

AustraliaCorporate/Commercial Law

As if the "unfair contracts" provisions in the Australian Consumer Law weren't exciting enough, they're being extended to small business dealings.

The existing laws apply to standard form consumer contracts - gym memberships, phone contracts, vehicle rental forms etc - the ones where you can't charm your way into a better deal or, to put it another way, the ones you don't read before clicking "accept".

Unfair terms are those which are not 'reasonably necessary' to protect the legitimate interests of a party, which would cause detriment to the other party and which would cause a significant imbalance in the rights and obligations of the parties under the contract. You've seen these terms before; like how your gym used to require you to move to the Moon if you wanted to cancel your membership.

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