Consumer Action has provided a joint submission to Treasury’s consultation on Enhancements to Unfair Contract Term (UCT) Protections.
Nearly a decade of the current UCT legislative regime has not eradicated UCTs from standard form consumer contracts. We continue to see UCTs be used and relied on by business across a wide range of industries, despite extensive regulator education and guidance programs. We have provided examples of a range of industries where we regularly see consumers harmed by UCTs.
Making UCTs illegal and attaching substantial penalties to breaches of UCT laws would increase the likelihood of compliance and improve the effectiveness of the laws. There is no valid argument that this change would impose any unreasonable additional compliance burden, as businesses should have already reviewed their standard form contracts for compliance with the UCT regime and it would not change the terms to which the law applies.
Read the full submission [here]20200401_Treasury UCT enhancements sub final