Unfair contract terms.
Now carry a $50M penalty.

Since November 2023, using or relying on an unfair contract term is a civil penalty provision. The ACCC and state consumer protection agencies can seek penalties of up to $50 million (for corporations), $2.5 million (for individuals), or 3 times the value of the benefit obtained from the unfair term. Previously, unfair terms were simply void - there were no penalties. The 2023 reforms made UCT a genuine enforcement priority.

A standard form contract is one prepared by one party where the other party has little or no opportunity to negotiate the terms. Courts look at: whether the contract is offered on a take-it-or-leave-it basis, whether one party prepared all the terms, and whether the other party had a genuine opportunity to negotiate. Many business-to-business contracts that are described as 'standard' may qualify, even if the counterparty could theoretically have negotiated.

Yes. Configure a playbook with rules for the prescribed unfair term categories: unilateral variation, one-sided termination, disproportionate exit fees, automatic liability transfer, and unilateral price variation. Kontractually checks every contract against these rules and flags provisions that exhibit unfair term characteristics. This is particularly useful for reviewing your own standard form contracts before issuing them.

Both. If you issue standard form contracts to consumers or small businesses, your own terms need to comply. If you receive standard form contracts from suppliers or service providers, you may have protections against their unfair terms. Kontractually supports both use cases - review incoming contracts for unfair terms you can challenge, and review your own templates to avoid using unfair terms that could attract penalties.