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ARTICLE · 23 MARCH 2024

Impact of unfair contracting law changes on the transport sector

Holding Redlich
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The unfair contract laws aim to stop businesses from agreeing to or relying on unfair terms against small businesses.

AustraliaTransport
Nathan Cecil
Nathan Cecil
Melanie Long
Melanie Long
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Impact of unfair contracting law changes on the transport sector

The unfair contract laws aim to stop businesses from agreeing to or relying on unfair terms against small businesses.

New laws came into effect in November last year, which amended the unfair contract terms regime under the Australian Consumer Law (ACL). These changes include an expansion of the small business contract threshold, additions to the determination of a 'standard form contract' and an increase in penalties and remedies available to courts.

As a result of these changes, businesses in the transport sector should review their contracts to ensure that they don't contain terms that are likely to be considered 'unfair' and potentially attract a monetary penalty, which for a company, could be as high as $50 million or three times the value of the "reasonably attributable" benefit obtained from the conduct (whichever is greater).

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This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.

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