- The Australian government passed new legislation to increase penalties for breaches of consumer law. Penalties for corporations found guilty of violating competition or consumer protection laws have increased significantly. Companies could face fines up to $50 million, or three times the benefit derived from the infringement, whichever is greater.
- Individual penalties for corporate executives involved in anti-competitive behavior are also being raised to encourage accountability at the top levels of management.
Focus on Small Businesses
- The ACCC has been working to improve competition in the small business sector, focusing on helping small businesses deal with larger corporations. This includes monitoring unfair contract terms, as well as protecting small suppliers from unfair treatment by large retailers and wholesalers.
- The Small Business Engagement program has also been strengthened to provide resources and guidance for smaller businesses navigating competition laws.
The Australian Competition and Consumer Commission (ACCC) has a key role in regulating unfair contract terms to ensure that consumers and small businesses are not taken advantage of by larger, more powerful entities. An unfair contract term is one that creates an imbalance between the rights and obligations of the parties, to the detriment of the consumer or small business, and is not necessary to protect the legitimate interests of the other party (typically a business).
It can all get a bit complicated determining what is compliance versus just being outdated. Get in contact with our Live Terms team to have a quick “health check” on your terms and conditions. Further information can be found at Business | ACCC