NSW Standing Committee releases report on unfair terms in consumer contracts - Blake Dawson Waldron Lawyers
The NSW Legislative Council Standing Committee on Law and Justice has released their final report on the inquiry into unfair terms in consumer contracts. This is likely to have a direct impact on users of internet, mobile phone and cable television services, amongst others. The report addresses the following issues:
- whether consumer contracts contain terms which cause a significant imbalance between the rights and obligations which apply under the contract, to the detriment of the consumer. These may include terms which:
(a) allow unilateral variations by a supplier on price or the characteristics of goods or services supplied;
(b) create unequal penalties for suppliers and consumers;
(c) allow a supplier to suspend services while continuing to charge a consumer; and
(d) allow the supplier, but not the consumer, to terminate the contract;
- whether the use of standard form contracts has increased the incidence of unfair contractual terms;
- the remedies available in respect of unfair contract terms (at common law and under statute); and
- the effectiveness of specific purpose legislation in various jurisdictions.
The Committee has recommended creating a taskforce within the NSW Office of Fair Trading to develop and implement a scheme for the protection of consumers in relation to unfair terms in consumer contracts. The scheme will be based on the Victorian model.
The NSW Government is due to respond to the report by 23 May 2007.
