Unfair Contract Terms – ACCC takes action against Fuji

Unfair Contract Terms – ACCC takes action against Fuji

The ACCC has instituted proceedings against Fuji alleging that nine types of Fuji’s standard form small business contracts contain numerous unfair contract terms, including automatic renewal terms, excessive exit fees and unilateral price increases.

ACCC Deputy Chair Mick Keogh, explained why the ACCC took action.

“We have received a number of complaints from small businesses alleging that some of the terms in Fuji’s contracts have caused them significant financial harm,” Mr Keogh said.

“Some of the unilateral variation terms allow Fuji to modify contracts by creating new rights and obligations, including increasing prices, without notifying its customers and without giving them any corresponding right to negotiate or reject.”

“The ACCC will argue that the unfair terms in these contracts cause a significant imbalance in the rights and obligations of Fuji and the small businesses they contract with,” Mr Keogh said.

“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 ACCC is seeking declarations that the terms in the existing contracts between Fuji and its small business customers are unfair and therefore void, and an injunction to prevent Fuji from relying on these terms in its current contracts or entering into future contracts that contain those terms. The ACCC is also seeking an order for a corrective notice, a compliance program and costs.

Contact the Commercial Team at Belperio Clark for assistance with ensuring your Terms of Supply are compliant with the Unfair Contract Terms legislation OR if you have issues with the Terms provided by your supplier.

Prepared by Eugene Reinboth

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