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New guide to help Australian automotive businesses avoid unfair contract terms

6 September, 2023

Business owners in the automotive industry now have a comprehensive guide to help protect against unfair contract terms, thanks to the Motor Trades Association of Australia (MTAA).

Unfair contract terms are often difficult to interpret and can hide in confusing fine print.

MTAA, with the help of HWL Ebsworth Lawyers, have prepared Unfair contract terms in the automotive industry: Everything you need to know, a guide that helps vulnerable business owners recognise unfair contract terms, what they mean for their operations, and what they can do about them, so they don’t find themselves in unequal and untenable situations.

The Treasury Laws Amendment (More Competition, Better Prices) Bill 2022 (Cth), imposing penalties for unfair contract terms, received royal assent on 9 November 2022.

The new legislation – which comes into effect on 10 November 2023 – amends the Competition and Consumer Act 2010 (Cth) and the Australian Securities and Investment Commission Act 2001 (Cth) to impose penalties for proposing or relying on unfair contract terms. Ensuring standard form contracts do not contain any unfair contract terms is now even more important.

MTAA’s guide can assist business owners in all sectors of the automotive industry to ensure they’re ready for the unfair contract terms changes.

“MTAA is proud to produce a revolutionary document consistent with the vision, purpose, and values of MTAA and its members,” said MTAA CEO Geoff Gwilym.

“Unfair contract terms in the automotive industry: Everything you need to know is the ‘go to guide’ for automotive businesses. It’s easy to read and simple to navigate. There is nothing of its kind on the market.”

The guide features 15 automotive industry sectors, with 41 unfair contract term examples, explained in plain English.

The comprehensive information within the guide seeks to simplify complex unfair contract terms legislation to create a usable guide for everyone in the automotive industry.

“MTAA has long held its commitment to the industry to provide information that is relevant and critical to its members’ business success. This is yet another class-leading example,” said Mr Gwilym.


Download Unfair contract terms in the automotive industry: Everything you need to know.

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