Standard form contracts come with terms and conditions - the fine print (T&Cs) which are carefully drafted to protect the business by removing rights customers have.
The business has the upper hand. Even if they wanted to or knew what to ask for, customers don’t negotiate changes to the standard T&Cs. They are ‘take it or leave it’.
Enter the consumer watchdog - the ACCC. Term by term, the ACCC is using its powers to remove unfair contract terms from standard form contracts. It is removing unfair contract terms for the benefit not only of customers, but also small businesses (which employ to 20 people and where the contract price is $300,000 upfront or $1 million over more than 12 months).
What examples are there of unfair terms which the ACCC has had removed?
- Price increases without notice and without the right to terminate the contract
- Automatic rollovers at the end of the term unless (6 months) notice is given not to renew or a termination fee is payable
- 'No responsibility' terms where the provider is not liable for any loss
- 'No refund' terms where the order cannot be delivered or the customer cancels
If your terms and conditions contain these terms, they should be removed and re-drafted because they will not stand up in court.