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ACCCC cracks down on Uber unfair "small business" contract

Discussion in 'Melbourne | Uber Drivers Forum' started by skyco, Jul 25, 2017.

  1. skyco

    skyco Active Member


    Unfair contract terms between businesses are in the regulator's sights according to the Australian Competition and Consumer Commission's small business report released on Monday.

    The report reveals prior to and since the new business to business unfair contract terms law came into effect in November 2016 the ACCC has "engaged" with a number of businesses that have now amended their standard form contracts to address the regulator's concerns.

    Five ridiculous clauses in Uber driver ...
    Thinking of driving for Uber? You might want to check the fine print in their contracts.

    Five businesses singled out
    The ACCC named five businesses that have changed their small business contracts:

    • Uber changed its standard driver agreement that previously allowed the tech giant to terminate the agreement "without cause". The right to termination is now limited to certain circumstances including acting reasonably in order to protect its legitimate interest.
    • Fairfax Media (publisher of MySmallBusiness) changed a term in its advertising contract that allowed it to refuse or withdraw a customer's advertisement for any reason at any time. This is now limited to certain situations such as where the advertising may be illegal, defamatory or obscene.
    • Lendlease changed various terms in its standard lease that allowed it unlimited rights to recover costs from its tenants. It is now limited to costs properly and reasonably incurred.
    • Sensis had to amend terms that automatically renewed its small business customers contracts and entered into a court enforced undertaking with the ACCC.
    • Jetts Fitness changed a wide-ranging restraint of trade clause in its franchise agreement to reduce the period and geographical scope of the restraint.

    Court actions to follow
    ACCC deputy chair Michael Schaper says the watchdog is committed to ensuring small businesses receive the protection of the unfair contracts legislation.

    "Despite the number of businesses that have amended their standard form contracts, the ACCC is prepared to take court action in the coming months to ensure compliance with the new law on unfair contract terms," he..... [Click here to read the full article]
    Cold Gin likes this.
  2. Moober68

    Moober68 Active Member

    Is this independent from the FWO thing? RSDU involved in any way or someone else finally complained?
  3. DriverX

    DriverX Active Member

    RSDU have been campaigning hard for drivers rights since about mid 2016, on almost every media outlet in Australia. I have no doubt ACCCC actions are an echo of this heavy campaign, not to mention the ongoing FWO investgation. The two government departments must be working together, no doubt.

    I am not surprised to see the ACCCC joining the probe.

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