MTAA Publishes New Guide To Help Businesses Avoid Unfair Contract Terms

The Motor Trades Association of Australia (MTAA), in conjunction with HWL Ebsworth Lawyers, has prepared a comprehensive guide to help protect automotive business owners against unfair contract terms.

According to the MTAA, unfair contract terms are often difficult to interpret and can hide in confusing fine print, but ‘Unfair contract terms in the automotive industry: Everything you need to know’ helps business owners recognise unfair contract terms, what they mean for their operations, and what they can do about them.

Additionally, the guide can help business owners, in all sectors of the automotive industry, ensure they are ready for changes to unfair contract terms.

The Treasury Laws Amendment (More Competition, Better Prices) Bill 2022 (Cth), effective from 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.

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

“ ‘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.”

According to the association, the guide features 15 automotive industry sectors, with 41 unfair contract term examples, explained in plain English.

The comprehensive information in the guide seeks to simplify complex and unfair contract terms 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 Gwilym.

Download the guide here.