CHOICE is urging the Australian government to make unfair contract terms illegal. Our existing unfair contracts legislation is not strong enough to stop businesses from including unfair terms in their contracts. Education and industry engagement have been largely ineffective in changing business behaviour and without strong deterrents, the law will continue to deliver adverse outcomes for consumers. It is crucial that the Australian government makes unfair contract terms illegal, and attaches appropriate penalties to businesses that breach the law.
CHOICE welcomes the recent extension of protections from unfair contract terms in insurance contracts. However, the government needs to go one step further in reducing consumer harm by making it illegal to include unfair contract terms in consumer and insurance contracts. This would mean that companies would face meaningful penalties for serious breaches.
Download submission (PDF)
Related content
- Your rights when it comes to unfair contract terms
- How does your insurer define a fire?
- Three big consumer wins from the banking royal commission
- Your rights when it comes to unfair contracts
- Beware the hidden conditions in your user agreement
We're on your side
In more than 60 years of making a difference for Australian consumers, we've never taken ads or sponsorship.
Instead we're funded by members who value expert reviews and independent product testing.
With no self-interest behind our advice, you don't just buy smarter, you get the answers that you need.
You know without hesitation what's safe for you and your family.
And you'll never be alone when something goes wrong or a business treats you unfairly.
Learn more about CHOICE membership today
Stock images: Getty, unless otherwise stated.