Major changes to the unfair contract terms legislation came into effect on 10 November 2023, and penalties apply if you get it wrong.
Late last year Federal Parliament approved a series of amendments to the existing unfair contract terms (UCT) regime embedded in the Australian Consumer Law and Australian Securities and Investments Commission Act 2001 through a Treasury Laws Amendment (More Competition, Better Prices) Act 2022 (Cth) (UCT Amendments). These amendments take effect from 10 November 2023.
The UCT Amendments aim to provide broader protection to consumers and small businesses. UCTs are contractual provisions that significantly disadvantage consumers and smaller businesses, leading to imbalances in bargaining power, exploitation, and often harmful economic consequences.
In series of three short articles, which you can access here, we look at how the UCT Amendments operate and the potential impact on you by examining:
- Who (and what) the amendments will impact
- What is an unfair contract term?
- Why does it matter (implications)?