top of page

Understanding the Recent Changes to Australian Consumer Law and the Impact on Businesses and Consumers

In light of the recent amendments to the Australian Consumer Law, businesses face new challenges in ensuring their contracts are compliant and free from unfair terms.


These changes not only underscore the importance of meticulous legal review but also demonstrate the potential for severe penalties for non-compliance. As contracts form the bedrock of business operations, it's crucial to navigate these revisions with precision and foresight.


At Arida Lawyers, our experienced team specialises in aligning contracts with the latest legislative nuances. Don't leave your business exposed to potential legal pitfalls. Reach out to Arida Lawyers today to protect your business.

A logo white transparrent.png

Amendments to the Australian Consumer Law

Arida Lawyers provides an overview of the newly amended provisions in the Australian Consumer Law, set out in Schedule 2 of the Competition and Consumer Act (Cth) 2010. It's crucial for businesses and consumers alike to grasp these amendments and the implications they bring.

Stricter Penalties for Non-Compliance

Parliament has heightened the penalties for companies that do not adhere to specific provisions stipulated within the Competition and Consumer Act:

Scale of Penalties: Previously, the ceiling for penalties was considerably lower. The revised regulations now dictate penalties to be the greater of:


  1. $50 million,

  2. Three times the value of benefits derived from the breach; and

  3. 30% of a company’s turnover during the period it engaged in the contravening conduct.


This restructuring aims to emphasise that breaching the Australian Consumer Law will have severe financial consequences, rather than being viewed as an operational cost.

Taking a Stand Against Unfair Contract Terms

One of the most notable amendments pertains to how unfair contract terms are handled:

Introduction of Penalties: In an unprecedented move, penalties are now associated with businesses that incorporate unfair clauses in standard-form contracts. This not only protects consumers but also shields small businesses.


Review Period: Businesses are granted a 12-month window to reassess and align their standard contracts with the updated guidelines and in adhering with the legislative stipulations contained in the Australian Consumer Law. This is a proactive measure to encourage businesses to comply.


Expanded Scope of Protection: The unfair contract terms provisions now capture more small business contracts. The criteria will include businesses with less than 100 employees or those generating an annual turnover under $10 million, and applies irrespective of the contract value.


Clarifications and Definitions: The amendments also shed light on aspects that were previously ambiguous, such as offering a clearer definition of 'standard form contracts'. This is anticipated to reduce ambiguity and foster a fairer commercial landscape between small and large businesses when engaging in consumer and or commercial transactions.

A Quick Look Back

The recent changes, contained in the Treasury Laws Amendment (More Competition, Better Prices) Bill 2022, received Parliament's approval on 27 October 2022. It's pivotal to acknowledge that these increased penalties will be applicable to businesses that engage in the discussed contravening conduct subsequent to the bill's commencement.

Additionally, individual infringements have not been overlooked. The maximum fine for individuals has experienced a significant increase, increasing from $500,000 to $2.5 million.


Final Thoughts

At Arida Lawyers, we pride ourselves on staying abreast of the latest legal developments, especially in the realm of consumer protection. With the recent amendments to the Australian Consumer Law, there's a heightened focus on ensuring business contracts are free from unfair terms. Falling short of these regulations could result in significant adverse penalties, a risk no business should take lightly.

Our experienced legal team is proficient at meticulously reviewing and drafting contracts that align with the latest legislative requirements, ensuring your business operates within the confines of the Australian Consumer Law whilst also securing your business interests. If you're uncertain about your current contracts or simply wish to safeguard your business against potential pitfalls, we invite you to contact Arida Lawyers for a complimentary 10-minute consultation.

This article provides general information relevant to our expert services. It is not legal advice and should not be relied upon as such. If you are seeking legal advice, you should contact us for a free initial consultation.

Liability limited by a scheme approved under Professional Standards Legislation.

bottom of page