Consumer Law & ACL Disputes
Unfair contract terms are void and unenforceable.
The Australian Consumer Law prohibits unfair terms in standard form contracts used with consumers and small businesses. If you are locked into a contract with terms that give one party an unreasonable advantage — without legitimate justification — those terms may be void. Submit your request and speak with a consumer law lawyer who can assess whether your contract contains unfair terms and what you can do about it.
⚠ Since November 2023, the ACCC can seek penalties of up to $50 million against businesses that include unfair terms in standard form contracts — the laws have real teeth — submit your request now.
Does This Sound Like You?
Common situations we help with.
An online platform can terminate your account without notice or reason
An online marketplace, software platform, or app has standard terms allowing it to suspend or terminate your account at its absolute discretion, without notice, and without any right of appeal — even though your business depends on the platform to operate.
A standard form lease has completely one-sided exit terms
Your commercial or retail lease was presented as non-negotiable and contains terms that allow the landlord to terminate on broad grounds without compensation, while imposing substantial exit penalties on you for early termination — creating an extreme asymmetry of rights.
A franchise agreement contains unusual penalty clauses
Your franchise agreement was a non-negotiable standard form document that includes very broad termination rights for the franchisor, forfeiture of your goodwill, or financial penalties that apply even when the franchisor terminates — you want to know whether these terms are enforceable.
A gym or subscription contract is impossible to exit
You signed up for a gym, subscription service, or other ongoing contract and are now unable to exit without paying fees equivalent to the rest of the contract term. The exit and cancellation terms were buried in small print and were not drawn to your attention when you signed.
A supplier contract allows unilateral price changes without consent
Your supply agreement contains a clause allowing the supplier to change their prices or terms at will, with minimal notice, while you remain locked in and subject to exit fees. The price change mechanism operates entirely in the supplier's favour with no corresponding rights for you.
Your insurance policy excludes things you thought were covered
An insurance policy exclusion is being applied to deny your claim in circumstances where the exclusion appears to be overly broad, buried in the policy, or inconsistent with how the policy was represented at the time of sale. You want to know whether the exclusion is enforceable or can be challenged.
How It Works
Challenge the clause. Restore the balance.
Describe the contract, the term you believe is unfair, and how it has been applied against you. A consumer law lawyer will assess whether the term qualifies as unfair under the ACL and advise on how to challenge or avoid it.
Submit Your Unfair Contract Terms RequestSubmit your request
Describe the contract type, the term you believe is unfair, who the other party is, and how the term has been or is being applied to disadvantage you.
Contract and term assessed
A consumer law lawyer reviews whether the contract is a "standard form" contract, whether the ACL unfair terms regime applies, and whether the specific term meets the definition of "unfair" under the ACL.
Challenge or defence pursued
Your lawyer advises on the best approach — a complaint to the ACCC or AFCA, raising unfairness as a defence in any proceedings, or court action to have the term declared void.
$50M
Maximum penalty for using unfair terms in standard form contracts after November 2023 law changes — the unfair terms regime now has real enforcement teeth
All 8 States
Requests matched to specialist consumer law lawyers across every state and territory in Australia
Free
Initial consultation — understand whether your contract contains unfair terms and what you can do about it
2023
Major expansion of unfair contract terms protections — extended to small businesses and significantly increased penalties from November 2023
Before You Comply
Practical questions about unfair contract terms in Australia.
What makes a contract term "unfair" under the ACL? +
Under section 24 of the ACL, a term is unfair if: (1) it would cause a significant imbalance in the parties' rights and obligations arising under the contract; (2) it is not reasonably necessary to protect the legitimate interests of the party who would be advantaged by it; and (3) it would cause detriment (financial or otherwise) to a party if relied upon. All three elements must be satisfied. The court must also consider the contract as a whole and the transparency of the term. Terms that allow one party to avoid or limit their obligations, unilaterally vary the contract, or penalise the other party for exercising their rights are common examples of potentially unfair terms.
What is a "standard form contract"? +
A standard form contract is a pre-prepared contract presented on a "take it or leave it" basis, where one party has all or most of the bargaining power and the other party has little or no opportunity to negotiate the terms. Under the ACL, if one party suggests a contract is a standard form, it is presumed to be so unless the other party proves otherwise. Most consumer contracts — click-wrap terms, gym memberships, insurance policies, subscription agreements — are standard form contracts. Even some business contracts may qualify if they are non-negotiable templates.
Which contracts are covered by the unfair terms regime? +
The ACL unfair terms regime covers standard form consumer contracts (where one party is an individual acquiring goods or services wholly or predominantly for personal, domestic or household use) and — since November 2023 — standard form small business contracts. A small business contract is one where at least one party is a business that employs fewer than 100 people (or has an annual turnover of less than $10 million) at the time the contract is entered into. There is no longer a contract value cap on small business contracts, following the 2023 reforms.
Can I take individual court action or does only the ACCC act? +
Both. The ACCC can take enforcement action against businesses using unfair terms and apply for court orders declaring terms void and imposing civil penalties (up to $50 million for bodies corporate from November 2023). Private parties — including consumers and small businesses — can also apply to a court to have a term declared unfair and therefore void. In practice, for individual disputes the unfairness of a term is often raised as a defence when the other party seeks to enforce it, rather than through initiating separate proceedings.
What small business protections were extended in the 2023 reforms? +
The Treasury Laws Amendment (More Competition, Better Prices) Act 2022, which took effect in November 2023, significantly expanded unfair contract terms protections for small businesses. The key changes include: the removal of the $300,000 contract value cap (so all small business contracts are covered regardless of value); the expanded definition of "small business" (now up to 100 employees or under $10 million turnover); and — most significantly — using unfair terms is now unlawful and subject to civil penalties, not just voidable. This means businesses cannot include unfair terms in standard form contracts even if they never rely on them.
What remedies are available if a contract term is found to be unfair? +
If a term is found to be unfair, it is void — meaning it cannot be relied on by either party. The contract itself continues to operate without the void term, provided it can operate without it. Remedies may include: the term being declared void (which means the business cannot enforce it); injunctions preventing the business from applying the term; orders requiring the business to notify affected customers; and — for ACCC proceedings — civil penalties. Where an unfair term has already been applied and caused you loss, you may also have a claim for damages or restitution.
Have a question not covered here? Submit your request and a consumer law lawyer will be in touch.
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