GOVERNMENT DELIVERS NEW PROTECTIONS FOR CONSUMERS

Standard-form contracts, like those offered for mobile phone and pay TV services, hire cars or gym memberships, are often made on a ‘take-it-or-leave-it’ basis. The new law provides consumers with better protection in cases where they have little or no ability to negotiate different terms. 

 

 The unfair contract terms provisions of the Australian Consumer Law, which come into effect from July 1 mean consumers will now have the ability to challenge the terms of these contracts.

 

Consumers can make a complaint to the ACCC which now has increased powers to ask courts to strike out terms which are deemed to be unfair.

 

Courts will also be able to strike those terms out for all consumers who signed up to the same standard-form contract, not just those who take legal action.