Page 44 - Print 21 magazine Jul-Aug 2021

Legal Issues
Unfair contract?
Look at contracts: ACCC
An alleged unfair contract case currently before
the courts should encourage all printers to look over their own contracts, and if anything seems unfair, seek to have it removed, says legal eagle
The print industry can
be a complex web of manufacturers, suppliers and customers, involving everything from small
local businesses to large global corporations. This means that
at times the ability of smaller businesses to negotiate terms for contracts can be limited. Despite this, small businesses are not powerless, and have rights and laws which protect them from unfair behaviour from larger companies.
The Australian Competition and Consumer Commission (ACCC) is currently taking an industry supplier to court over unfair contract terms contained in its contracts with small businesses in Australia. The ACCC is the main competition law regulator, and aims to promote competition and honesty among businesses
and customers. It alleges that the company has, across nine of its standard form contracts, used 173 unfair contract terms against small businesses. They relate to the supply of printing goods and maintenance services.
The unfair contract terms include powers to allow the supplier to increase prices without notifying the small businesses and without
allowing them to negotiate or reject the new prices. Further issues identified by the ACCC in the contracts included automatic renewal terms that gave small businesses a very limited amount of time to terminate their contract, unfair termination payment terms, and unfair end of contract payment terms.
ACCC deputy chair Mick Keogh stated that, “this Court action by the ACCC should prompt all other traders in the printing support industry to review their standard form contracts and make any necessary changes to remove unfair contract terms”. The strong message from this is that you should review your contracts with major suppliers.
Though this case is yet to be decided, the challenge of the print industry, where a number of large global suppliers deal with small local businesses which consequently have significantly less bargaining power, is clearly shown. The case highlights the importance of paying close attention to contracts:
• When entering into a contract,
it is important to review the fine
details carefully.
• Pay close attention to ongoing
rights and obligations to you
in any contract you enter into. Renewal terms and termination or end of contract payment terms can at times be difficult to locate or understand.
• The law provides a number of strong protections for people and businesses that enter into contracts with unfair terms.
If a court finds that a contract contains unfair terms, it can declare those terms void, which means that the terms cannot be enforced or used in any future contract.
If you are currently in a standard form contract with a major industry supplier, it is worthwhile having the contract reviewed. While the case discussed has not been decided, if you have entered into a contract with unfair contract terms, you can have the terms removed, either through negotiating or by legal action in court. 21
Wal Abramowicz, managing director, Fox & Staniland Lawyers, Gordon, NSW
Wal Abramowicz.
44 Print21 JULY/AUGUST 2021