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An Australian firm has commended new changes that it says will protect tens of thousands of small businesses against “unfair” contracts.
The new changes to the Australian Consumer Law took effect on Saturday and will see amended rules applied to standard business form contracts entered into, renewed or amended after 12 November 2016.
“These new changes will affect tens of thousands of small businesses across Australia,” said Mr Robertson.
“The changes mean that small businesses will be protected from unfair contracts that, among other things, cause a significant imbalance in the parties’ rights and obligations under a contract.
“In essence, unfair contracts benefit one party over the other.”
The changes affect businesses with fewer than 20 employees and an up-front contract price of $300,000 or less, or $1 million or less for contract terms over 12 months.
“The introduction of these changes will mean much greater protection for small businesses, but are also a reminder for anyone involved in the preparation of standard short-form contracts to make sure that they now comply with the new regulations,” said Mr Robertson.
