The Unfair Contract Term (UCT) regime under Australian Consumer Law has been amended as from 9 November 2023 and now applies to more businesses than ever as it applies to standard form contracts where one contracting party has less than 100 employees and/or a turnover of less $10,000,000.
By implementing the following practices and fostering effective collaboration with external providers, in-house lawyers can ensure compliance, mitigate risks and support their businesses in the evolving UTC legal landscape:
Assess: Does your organisation, or a party with which your business contracts with, have less than 100 employees and/or a turnover of less $10,000,000?
Comprehensive Contract Review: Conduct a thorough review of existing business contracts to identify if they are:
- standard form contracts,
- contain unfair contract terms, and
prioritise amending or removing unfair contract terms to align with the revised regulations.
Educate Stakeholders: Ensure that key stakeholders within your organisation are aware of the UCT changes. Provide training sessions to enhance understanding and compliance at all levels.
Open Communication: Foster transparent communication with external legal providers and clearly articulate your organisation’s expectations regarding UCT compliance.
Regular Compliance Audits: Conduct regular audits to assess both internal and external compliance with UCT regulations.
For more information about the changes to the Amendments to Unfair Contract Terms post November 2023 see our Amanda Crosbie’s article here.