One-sided cancellation terms can be unfair contract terms

The rule

A pre-written contract that customers can only take or leave is a standard form contract, and the ACCC says there's a presumption a contract is one. Unfair terms in these contracts are void, and since 9 November 2023 using them can attract penalties. The ACCC lists, as an example of a term that may be unfair, one that penalises one party but not the other for breaching or ending the contract. Terms must also be transparent: in reasonably plain language, clear and not hidden.

ACCC content is published under CC BY 4.0.

What it means for your business

• Write cancellation and no-show terms in plain words, and show them before someone books or pays.
• A term that only penalises the customer is the kind of term the ACCC flags. Get your lawyer to check the fee before you charge it.
• This is general ACCC guidance, not clinic-specific, and it doesn't set an allowed fee amount.

Used in

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