ACCC Consultation on business-to-business unfair contract terms draft legislation

The Federal Government is proposing to introduce laws relating to unfair contract terms for small businesses.

Under the proposed legislation, a court will be able to strike out a term in a small business contract that is considered unfair. For example, a term that allows a big business to unilaterally change the price or key terms during the course of the contract could be considered unfair.

The protections will apply to businesses that employ less than 20 persons, for transactions under $100,000, or $250,000 for contracts that last longer than 12 months.

The Government has now released the draft legislation and explanatory materials, and is inviting interested parties to make a submission on the draft legislation and explanatory materials. Submissions close Tuesday 12 May 2015.

For copies of the draft legislation and explanatory materials, and for information on how to make a submission, visit the Treasury website.

Kind regards, 

Small Business team

Australian Competition and Consumer Commission (ACCC)

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