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Submission to Treasury on strengthening protections against unfair contract terms

September 2021

man signing a legal contract

CHOICE welcomes the Treasury's proposal to change the Australian Consumer Law and Australian Securities and Investments Commission Act, so that businesses using unfair contract terms will be fined for their bad behaviour.

Unfair contract terms are still being used by big businesses despite the prohibition on their use coming into effect in 2011. CHOICE welcomes the Treasury Laws Amendment (Measures for a later sitting) Bill 2021: Unfair contract terms reforms (the Draft Bill). The Draft Bill, if passed by Parliament, will strengthen and clarify existing unfair contract term provisions. These changes are overdue as businesses have continued to rely on unfair contract terms over the past 10 years since their initial prohibition.

CHOICE believes the Draft Bill will reduce the use of unfair contract terms. By making unfair contract terms illegal and giving courts the power to impose strong penalties, this Draft Bill will deter businesses from using unfair contract terms and, in turn, mean that consumers will be subject to fewer unfair contract terms.

Download submission (PDF)

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