ASIC releases unfair contract term protections for small businesses
5 February 2016
On 2 February 2016, ASIC released an Information Sheet entitled Unfair contract term protections for small businesses (INFO 211) which provides guidance on new protections for small businesses against unfair contract terms (which already apply to standard form consumer contracts) and will be coming into effect from 12 November 2016.
Please click here to view the Information Sheet.
The Information Sheet provides guidance on:
- The scope of the new protections and any exclusions (including how the law defines a standard form and small business contract);
- Circumstances when a term of a small business contract is unfair (including practical examples);
- Consequences of unfair contract terms;
- What to do in circumstances where a party thinks a contract term may be unfair; and
- ASIC's expectations of businesses between now and 12 November 2016 in relation to their small business contracts.
HDY's Regulatory Risk + Strategy team would be happy to discuss the Information Sheet with you and, if required, assist you during the transition period leading up to 12 November 2016 in reviewing your business' contracts for potential terms that may breach the new requirements