Do your contracts stack up? Are you getting a fair deal on contracts from suppliers?

Join the MTA, together with HWL Ebsworth to learn more about new Unfair Contract Terms legislation and how it will affect you.

As you may know, a court can declare – or a customer or supplier may dispute – a term of a standard form contract to be unfair.

To help you navigate this, the MTA invites you to attend an exclusive member briefing on how to navigate your business through the regulatory changes around Unfair Contract Terms.

The Motor Trades Association of Australia, our national body, in collaboration with HWL Ebsworth Lawyers, has organised five national member briefings for members. Do not miss the opportunity to hear from Teresa Torcasio (Partner at HWL Ebsworth) about the regime, and ask questions on the night. Specific UCT examples to assist your business in your sector, will be discussed.

Teresa’s comprehensive knowledge of the Australian Consumer Law has assisted her to advise clients on their risks, rights and obligations as buyers and sellers of goods and services and to negotiate excellent outcomes for her clients.

The online briefing details can be found below:

Date:

19th October 2023

Time:

6pm - 8:30pm (South Australia)

5pm - 7:30pm (Northern Territory)

Available online only

Unfair Contract Terms (UCT) – Will your business be caught by changes to the regime?

The UCT Reform Bill will introduce several changes to the unfair contract terms laws in both the ACL and the Australian Securities and Investments Commission Act 2001 (Cth) (ASIC Act).

The compliance risk of relying on standard form contracts to conduct business in Australia is set to significantly increase in 2023. With an expanded class of contracts soon to be covered, plus "unfair" contract terms to be prohibited and subject to penalty rather than merely void, it's time to reconsider whether your contracts may be caught before changes to the regime come into effect in November 2023.

Key Points that you need to know and topics for the evening

Unfair contract terms would be unlawful and the business proposing or seeking to rely on them would be exposed to the risk of serious penalties, in line with the maximum penalties under the ACL or the ASIC Act (depending on the type of contract). Currently there are no penalties for unfair contract terms. This will change from November 2023.

For contracts to which the ACL applies, the laws would remove the financial thresholds that currently apply to relevant contracts. Instead, the laws would apply to any standard form contract with a 'small business'. The definition of small business is expanded to capture entities with up 100 employees (increased from 20) or with up to $10 million annual turnover.

For contracts to which the ASIC Act applies, the laws would increase the financial threshold from $3 million to $5 million and the definition of small business is expanded to capture entities with up to 100 employees (increased from 20) or with up to $10 million annual turnover. However, certain contracts would be excluded from the new UCT regime, including operating rules of licensed financial markets (such as ASX Limited) and licensed clearing settlement systems.

Courts would be empowered to make more flexible orders to prevent or reduce loss or damage in relation to the UCT, in addition to the power to impose civil penalties.

If you would like further information or have questions regarding this topic, please contact the MTA’s dedicated Workplace Relations team via email at wr@mtasant.com.au or call (08) 8291 2000.