How to lodge an unfair contract term complaint with the ACCC
To report an unfair contract term, lodge a complaint with the ACCC via accc.gov.au identifying the standard form contract, the specific terms, and why they are unfair under section 24 of the Australian Consumer Law (Schedule 2, Competition and Consumer Act 2010 (Cth)). Since 9 November 2023 UCT contraventions attract civil penalties.
The framework
Competition and Consumer Act 2010 (Cth), Schedule 2 Australian Consumer Law (ACL) — sections 23, 24, 25, 27; Treasury Laws Amendment (More Competition, Better Prices) Act 2022.
The process
Confirm the contract is a standard form contract
Under section 27 of the ACL, a contract is standard form if one party prepared it and the other had little opportunity to negotiate. Online click-wrap, supplier T&Cs, and most small business contracts qualify.
Confirm you are a protected party
Protection applies to consumers (goods or services ordinarily acquired for personal use) and small businesses with fewer than 100 employees or annual turnover below $10 million (section 23(4)).
Identify the unfair term
Apply the three-limb test in section 24 — significant imbalance, not reasonably necessary to protect legitimate interests, and detrimental if relied upon. Section 25 lists examples such as unilateral variation, cancellation-at-will, and unreasonable limitation clauses.
Gather evidence
Collect the contract, correspondence, proposed amendments, marketing, and examples of detriment suffered. Note if the term has been enforced against you.
Try direct negotiation first
The ACCC will often ask whether you raised the issue with the counterparty. A genuine attempt at resolution strengthens any subsequent report.
Lodge the report online
Lodge via the ACCC online report form at accc.gov.au, describe the contract, identify the unfair terms, attach the contract, and describe the impact.
ACCC assessment
The ACCC assesses the report against its Compliance and Enforcement Policy and statutory priorities. Most matters are assessed within weeks.
Investigation
The ACCC may issue notices under sections 155 of the Competition and Consumer Act 2010 (Cth), request voluntary production, or use confidential compulsory examinations.
Enforcement outcomes
Outcomes include administrative resolution, court-enforceable undertakings under section 87B, or civil penalty proceedings in the Federal Court. Each unfair term is a separate contravention attracting penalties per section 224.
Private rights
The ACCC focus is public enforcement. Affected consumers and small businesses retain private rights to seek declarations and relief in the Federal Court or State courts under ACL Part 5-2.
Forms and templates
- ACCC report form — unfair contract terms
- ACCC small business report form
Common mistakes
- Reporting a negotiated contract (not standard form)
- Applying the UCT regime to contracts entered before 9 November 2023 without understanding transitional rules
- Not identifying each unfair term separately
- Assuming the ACCC will act on an individual dispute rather than systemic issues
- Overlooking state fair trading bodies for individual consumer remedies
Get this process right with Quillio
Quillio can review a standard form contract for unfair terms under sections 24–25, map each term to potential penalty exposure, and prepare an ACCC-ready submission. See /practice-areas/commercial-lawyers.
General information only, not legal advice. UCT exposure is complex and business-specific. Seek legal advice before lodging an ACCC report or amending contracts.
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