The Government has announced its intention to extend the unfair contract protections currently available to consumers to cover the small business sector.
In support of the proposal,the Government referrred to instances of misuse of market power in contracting of telephone and internet services, office or commercial leasing equipment, and retail outlet leases observed by the Australian Small Business Commissioner.
The new small business protections will allow the courts to declare void a term within a contract that is unfair. For example, a term that allows a big business to unilaterally change the price or key terms during the course of the contract could be considered unfair.
No definition of “small business” was announced.
It is also not clear whether the changes will apply to financial products and services provided to small business.
