As a small business owner, you may have heard of the Australian Competition and Consumer Commission`s (ACCC) crackdown on unfair contract terms. This is an important issue to be aware of, as unfair contract terms can have a significant impact on your business.
Unfair contract terms are clauses in contracts that give one party an unfair advantage over the other. For example, a contract may allow one party to unilaterally change the terms of the agreement, or it may require one party to take on all of the risk in a transaction.
In November 2016, the ACCC began targeting unfair contract terms in small business contracts. Under the Australian Consumer Law, the ACCC has the power to take legal action against businesses that use unfair contract terms in their contracts with small businesses.
The ACCC defines a small business as one that employs fewer than 20 people and has an annual turnover of less than $10 million. This means that many small businesses in Australia are protected by these regulations.
There are a number of types of contracts that are covered by the unfair contract terms provisions. These include contracts for the supply of goods and services, financial products and services, and franchise agreements.
So, what does this mean for your small business? Firstly, it means that you need to be aware of the types of contracts that may contain unfair terms. You should carefully review any contracts you are asked to sign, and seek legal advice if you are unsure about any of the terms.
Secondly, it means that you have a level of protection under the law. If you believe that a contract contains unfair terms, you can make a complaint to the ACCC. The ACCC may investigate your complaint and take legal action against the business if it finds that the contract contains unfair terms.
In addition to protecting small businesses, the ACCC`s crackdown on unfair contract terms is also designed to promote fair competition in the marketplace. Unfair contract terms can give larger businesses an unfair advantage over their smaller competitors, which can limit competition and harm consumers.
In conclusion, as a small business owner in Australia, you need to be aware of the ACCC`s crackdown on unfair contract terms. You should carefully review any contracts you are asked to sign, and seek legal advice if you are unsure about any of the terms. If you believe that a contract contains unfair terms, you can make a complaint to the ACCC and receive the protection afforded to small businesses under the Australian Consumer Law.