What are unfair contract terms in Australia?

General information from Lawmateanz

Under the Australian Consumer Law, unfair terms in standard form contracts with consumers and small businesses are prohibited. A small business is generally one with fewer than 100 employees or turnover under $10 million.

A term may be unfair if it causes a significant imbalance, isn't reasonably necessary to protect the business, and would cause detriment. Examples include one-sided rights to change prices or end the contract.

Unfair terms are void, and businesses can face significant penalties for including them.

The ACCC has guidance, and the Australian Small Business and Family Enterprise Ombudsman can help small businesses.

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