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ACCC wins for fairness

Tuesday, December 16, 2014

Congratulations to the ACCC for its win against the supermarket giant Coles. Business Spectator explains that:

"the ACCC has spent years investigating claims that supermarkets have ended contracts early, charged unfairly for warehousing, transportation and stock handling, and auctioned shelf space or used shelf space to get better contract terms."
Coles has admitted to such practices and agreed to pay a $10 million fine and to investigate compensation to the supplier ‘victims' of Coles' unfair contract practices.

This again demonstrates the need for unfair contract laws for small business people. We’ve been campaigning for these laws since 2010 (here’s our 2014 submission). Implementing the protections is Abbott government policy. The laws won’t totally stop unfair practices (just like drink driving laws don’t stop drunks driving!) But the laws will make it clear what unfair contracts are and make them easier to detect and take swift action.  

It's also interesting to see that Canada’s top court recently stated that commercial contracts involve an implied duty to act in good faith.
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