Proposed reforms to the unfair contract terms regime are back on the agenda

On 28 September 2022, the Labor government delivered on its election promise and introduced proposed reforms to the unfair contract terms (UCT) regime in Parliament. The proposed reforms set out in Schedule 2 of the Treasury Laws Amendment (More Competition, Better Prices) Bill 2022 (Cth) (TLA Bill 2022) strengthen protections for consumers and small businesses relating to UCTs in standard form contracts, in particular by prohibiting the use of UCTs and introducing civil pecuniary penalties. This legal update provides an overview of the TLA Bill 2022 and provides tips on what businesses can do now in anticipation of the proposed reforms becoming law.