The recent amendments to the Fair Trading Act 1986 included the introduction of a prohibition on including, enforcing or relying on any “unfair contract term” in standard form consumer contracts. This prohibition will apply to contracts that are entered into after 17 March 2015 or which are varied or renewed after that date.
The Commerce Commission has released draft guidelines on the new provisions of the Fair Trading Act dealing with unfair contract terms. The draft Unfair Contract Terms Guidelines can be viewed on the Commission’s website here.
The Commission welcomes feedback on the draft guidelines, which should be sent to the Commission by 30 September 2014. The Commission expects to release the final guidelines by the end of November 2014.
For further details see our earlier client update here.