The rule is that when you tick the box: I accept the terms and conditions - you cannot complain later, no matter how unfair the terms are.
But no longer - This year, small businesses joined consumers in being able to challenge unfair terms in standard form contracts, by virtue of an amendment to the Australian Consumer Law. And the Government watchdog - the Australian Competition & Consumer Commission (ACCC) is leading the way in cracking down on unfair terms in small business contracts.
Here are some examples of unfair terms which are void i.e. are no longer enforceable:
- Automatic Renewal - The Contract is automatically renewed for the same term unless a 60 days notice of cancellation is given before the current period ends.
- Unilateral Variation - The Contract allows the supplier to increase prices to pass on any increases in costs, without being limited to unavoidable increases such as tax increases.
- Limited Liability - The Contract provides that the supplier is not liable if it fails to provide the services or goods at the agreed times or cancels its services or deliveries.
- Early Termination Payments - The Contract requires payment of all that is owing and what is payable to the end of the term, even if the Contract is terminated early.
According to the ACCC, unfair terms in Contracts are prevalent in these industries: Advertising; Telecommunications; Retail Leasing; Independent Contracting; Franchising; Waste Management and Agriculture.
Suppliers need to urgently review their Terms and Conditions to remove unfair terms, otherwise the ACCC will crack down on them.