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The ACCC's example of an unfair contract term

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Business A provides standard form 3 year contracts for broadband services. A term of Business A’s contract allows it to change the price for the services at any time during the 3 years. The customer is not allowed to end the contract, even if they don’t agree to the price increase.

Business B provides standard form 3 year contracts for broadband services. A term of Business B’s contract allows it to change the price for the services at any time during the 3 years. However, another term of Business B’s contract allows customers who don’t agree to a price increase to end the contract without any penalty.

The term that allows Business A to change prices during the contract term is likely to be an unfair contract term. However, the similar term in Business B’s contract is likely to not be an unfair contract term because the other term allowing early termination without penalty balances it.