[LINK] ACCC vrs ByteCard

[stephen at melbpc.org.au]

Now here's a *really terrible* contract ..

"ACCC deems ByteCard’s contract terms unfair"

By Hafizah Osman (ARN)30 July, 2013
www.arnnet.com.au/article/522293/accc_deems_bytecard_contract_terms_unfair


The Federal Court has ruled in favour of the Australian Competition and 
Consumer Commission (ACCC) against Internet service provider, ByteCard 
(also known as NetSpeed Internet Communications) for unfair contract terms 
provisions.

ACCC brought the company to court, following a complaint from the 
Australian Communications Consumer Action Network (ACCAN), as it deemed 
that a number of the company’s standard form consumer contract clauses are 
unfair and therefore void.

The Federal Court declared, by consent, that certain clauses of ByteCard’s 
standard terms and conditions are unfair contract terms which enabled 
ByteCard to unilaterally vary the price under an existing contract without 
providing the customer with a right to terminate the contract.

In addition, it required the consumer to indemnify ByteCard in any 
circumstance, even where the contract has not been breached and the 
liability, loss or damage may have been caused by ByteCard’s breach of the 
contract; and enabled ByteCard to unilaterally terminate the contract at 
any time with or without cause or reason.

ACCC chairman, Rod Sims, said the terms were considered unfair as they 
created a significant imbalance in the parties’ rights and obligations; 
were not reasonably necessary to protect ByteCard’s legitimate interests; 
and if applied or relied upon by ByteCard, would cause detriment to a 
customer.

“This is the first time the ACCC has commenced legal proceedings based 
exclusively on the new unfair contract terms provisions of the Australian 
Consumer Law. The declarations are a reminder for businesses to ensure 
potential unfair contract terms are removed or amended,” he said.

ByteCard has also been ordered to pay a contribution to the ACCC’s costs.

“This is a positive outcome for consumers and acts as a warning to 
businesses. The ACCC won’t hesitate to take action against businesses who 
continue to include unfair terms in their standard form consumer 
contracts,” Sims added.

ByteCard spokespeople could not immediately be reached for comment.

--
Cheers,
Stephen

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