Unfair contract terms and small trade contracts

In 2015, the Fair Trading Act 1986 (Act) was amended to introduce an unfair contract term regime which currently applies to ‘standard form consumer contracts’. The Fair Trading Amendment Act 2019 (Amendment Act) extends the unfair contract term regime to certain ‘small trade contracts’.

Section 7 of the Amendment Act (which will extend the unfair contract term regime to apply to standard form small trade contracts) will take effect on 16 August 2022.

The Amendment Act makes other changes to the Act, such as prohibiting unconscionable conduct in trade and strengthening the ability of consumers to require uninvited direct sellers to leave (or not enter) their property.

We have published a guide which explains how the unfair term regime will apply to small trade contracts. You can get a copy of the guide here.

If you have any questions or would like our assistance in reviewing and/or preparing your contracts, please get in contact with us.

Disclaimer: This publication should not be construed or acted on as legal advice. It is brief and general in nature. Specific advice should be sought.