Avoid using unfair business tactics

It is illegal to force a consumer into an unreasonable contract by using:

• false or misleading statements
• undue pressure
• undue influence
• unfair tactics.

This is unconscionable conduct. A business must not take advantage of its bargaining strength over a consumer.

When you supply goods and services to a vulnerable person, you must:

• not take advantage of their vulnerability
• always act in good conscience.

Vulnerable people might be:

• consumers who do not speak English or have English as a second language
• consumers with learning, emotional or behavioural disabilities
• low-income earners (such as if you make false statements about the full cost of a loan).

Suppliers should comply with the requirements of any applicable industry code, particularly when customers reasonably believe the supplier will comply with that code.

Some other examples of unconscionable conduct include:

• not giving a customer enough time to
  • read or understand an agreement
  • ask questions
  • get advice
• using a friend or relative to influence the customer’s decision
• pressuring the customer into signing a blank or one-sided contract
• not disclosing or explaining the key terms of a contract
• using high-pressure tactics, such as not taking ‘no’ for an answer
• offering incentives for people to sign that are not listed on the contract.

More information

• Download the Avoiding unfair business practices guide or order a copy to understand how to comply with Australian Consumer Law.
• Read the Smart Business Bulletin for current news, features and business tips.