It’s been over a year since the Australian Consumer Law provided that terms that are ‘unfair’ in new or renewed consumer and small business contracts could be deemed void and unenforceable.

The competition regulator, the Australian Competition and Consumer Commission (ACCC), has initiated proceedings against Australia’s second largest car repair organisation in the country, Ultra Tune Australia Pty Ltd (Ultra Tune). The ACCC alleges that Ultra Tune has failed to comply with the Franchising Code of Conduct (Code) and the Australian Consumer Law (ACL)

As set out in our update “Small Business Offered Long Awaited Protection from Unfair Contract Terms”, unfair contract term provisions under the Australian Consumer Law (ACL) have been extended to not only protect consumers from unfair terms, but also parties to a small business contract.

From 12 November 2016, small businesses will receive important protection from unfair terms in standard form consumer contracts.

In the lead up to the festive season, the Federal Court has confirmed that Chrisco’s lay-by agreement included an unfair contract term in breach of the Australian Consumer Law (ACL).

The Federal Government has released a consultation paper seeking feedback from small business owners on proposed protections from unfair contract terms.