Avoid unfair contract terms in standard form consumer & small business contracts
From November 2023, unfair contract terms carry pecuniary penalties — up to $100M per term (from 28 March 2026).
Who must comply
Any business issuing standard form contracts to consumers or small businesses.
What triggers it
Including or relying on an unfair term in a standard form contract.
When due
Ongoing.
Evidence required
Reviewed contracts, legal sign-off, term-by-term assessment.
Max penalty
$100M, 3× benefit, or 30% of adjusted turnover (corporations); $2.5M (individuals) per term
Summary
Amendments to the Australian Consumer Law and ASIC Act, effective 9 November 2023, prohibit (with penalties) the use of, or reliance on, unfair contract terms in standard form contracts with consumers and small businesses (now redefined to <100 employees or <$10M turnover). Each unfair term can be a separate contravention.
Enforced by
Source legislation
Industries
Topics
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Frequently asked questions
- Who must comply with Avoid unfair contract terms in standard form consumer & small business contracts?
- Any business issuing standard form contracts to consumers or small businesses.
- What triggers Avoid unfair contract terms in standard form consumer & small business contracts?
- Including or relying on an unfair term in a standard form contract.
- When is Avoid unfair contract terms in standard form consumer & small business contracts due?
- Ongoing.
- What is the maximum penalty for Avoid unfair contract terms in standard form consumer & small business contracts?
- $100M, 3× benefit, or 30% of adjusted turnover (corporations); $2.5M (individuals) per term
- What evidence is required for Avoid unfair contract terms in standard form consumer & small business contracts?
- Reviewed contracts, legal sign-off, term-by-term assessment.
Source: https://accc.gov.au/business/business-rights-and-protections/unfair-contract-terms. Rules Mate is not a law firm. Always verify against the live regulator source before acting.