Minister for Fair Trading Virginia Judge today put industry on notice to give New South Wales consumers a fair go on contract terms or face court action.

Ms Judge said the Fair Trading Amendment (Unfair Contract Terms) Act 2010 will outlaw the use of unfair terms in standard consumer contracts.

“Consumers should be protected from contract terms that give all the advantages to the supplier,” Ms Judge said.

From 1 July 2010, NSW consumers will be able to challenge unfair terms in ‘take it or leave it’ contracts at the low-cost dispute resolution service, the Consumer, Trader and Tenancy Tribunal, or in the courts.

“Mobile phone contracts, rental car agreements, and gym memberships will be put under the microscope by the Commonwealth, States and Territories in an unprecedented, co-ordinated approach to enforcement,” Ms Judge said

The new law will protect consumers in two ways:

• It will provide an extra remedy to use when trying to resolve a contract dispute with a trader and 
• It will give NSW Fair Trading a new enforcement tool when dealing with unfair business practices.

The Council of Australian Governments agreed in October 2008 to move towards an Australian Consumer Law which should tackle unfair contract terms on a national basis.

“We fully support the reform of consumer protection laws in the move to a seamless national economy,” Ms Judge said.

“Our amendments provide protection and certainty to NSW consumers.

“They will have continued access to our statewide network of 24 Fair Trading centres and outreach services.”

The new law will apply to contracts entered into on or after 1 July 2010, or to contract terms varied on or after that date.

Back to Media releases

Top of page