Classification: unfair

**Working and reasoning**

The clause permits the supplier—but not the consumer—to vary a core term (the price) at any time, in any amount, at its sole discretion, without notice, while simultaneously excluding the consumer's right to terminate. This maps directly onto the statutory test and examples:

- **Controlling statute and test:** *Competition and Consumer Act 2010* (Cth), Schedule 2 (the Australian Consumer Law), **s 24**. Under s 24(1), a term of a consumer contract is unfair if:
  1. it would cause a **significant imbalance** in the parties' rights and obligations arising under the contract (s 24(1)(a));
  2. it is **not reasonably necessary** to protect the legitimate interests of the party who would be advantaged by the term (s 24(1)(b))—and note s 24(4) presumes the term is *not* reasonably necessary unless the advantaged party proves otherwise; and
  3. it would cause **detriment** (financial or otherwise) to a party if it were applied or relied on (s 24(1)(c)).

- **Application:**
  - *Significant imbalance* — plainly satisfied: the supplier holds a unilateral, unlimited power to change the price, while the consumer is denied any corresponding right, including the right to exit the contract.
  - *Reasonable necessity* — a discretion to vary fees "in any amount, at the supplier's sole discretion, without notice" goes far beyond what could reasonably be necessary to protect legitimate interests (e.g., passing on genuine cost increases); the supplier bears the onus under s 24(4) and this drafting could not discharge it.
  - *Detriment* — the consumer can be subjected to unlimited fee increases with no notice and no ability to terminate, an obvious financial detriment.

- **Reinforcing example:** Section 25(1)(d) of the ACL lists as an example of an unfair term "a term that permits, or has the effect of permitting, one party (but not another party) to vary the terms of the contract" — squarely describing this clause.

All three limbs of s 24(1) are satisfied, so the term is unfair and, under s 23(1), void (though the contract continues if capable of operating without it). Note also that for standard-form consumer contracts in FY2025-26, proposing, applying or relying on an unfair term attracts civil penalties under s 23(2A)–(2B) (inserted by the *Treasury Laws Amendment (More Competition, Better Prices) Act 2022* (Cth), applicable to terms made, renewed or varied from 9 November 2023).

**Controlling statute and section:** *Competition and Consumer Act 2010* (Cth), Schedule 2 (Australian Consumer Law), **s 24**.