The Australian Federal Government proposes to extend consumer protections against unfair contract terms to some small business contracts

Extension of unfair contract terms protection to small businesses - Many franchise agreements likely to be caught* The Federal Government has released an exposure draft of proposed legislation that would extend consumer protections against unfair contract terms to small business contracts that are standard form and valued less than a prescribed threshold (the Exposure Draft). You can find a copy of the Exposure Draft and other key documents here. Given the definition of a “small business contract” in the Exposure Draft, it is likely that many franchise agreements (which are often presented by franchisors to franchisees as standard form contracts) will be subject to the new regime. Notwithstanding the protections already afforded to franchisees under the Franchising Code of Conduct

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Authors

  • Cambre Associates (Brussels)
  • Corrs Chambers Westgarth (Melbourne)

Quotation

Claire Harris, Frances Wheelahan, The Australian Federal Government proposes to extend consumer protections against unfair contract terms to some small business contracts, 28 April 2015, e-Competitions April 2015, Art. N° 74053

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