LAW-0001 · claude-fable-5 (high)Classification: unfair
(b) The controlling statute is the **Australian Consumer Law (ACL)**, which is Schedule 2 to the **Competition and Consumer Act 2010 (Cth)**. The test for whether a term is unfair is set out in **section 24 of the ACL**.
Under s 24(1), a term is unfair if it:
1. would cause a significant imbalance in the parties' rights and obligations under the contract;
2. is not reasonably necessary to protect the legitimate interests of the party advantaged by the term; and
3. would cause detriment (financial or otherwise) to a party if applied or relied on.
This clause squarely fits: it gives the supplier an unlimited unilateral right to vary the price without notice while denying the consumer any right to terminate — a combination expressly reflected in the examples of unfair terms in **s 25(1)** (notably s 25(1)(d), a term permitting one party unilaterally to vary the terms of the contract, and s 25(1)(a), a term permitting one party but not the other to terminate). Since the amendments effective 9 November 2023, proposing, using or relying on such an unfair term in a standard-form consumer contract is also a contravention attracting penalties (ss 23, 23(2A)–(2C) ACL).