Classification: unfair

(b) Controlling statute and section: Australian Consumer Law (Schedule 2 to the Competition and Consumer Act 2010 (Cth)), section 24, which sets out the test for whether a term of a consumer contract or small business contract is unfair (a term is unfair if it would cause a significant imbalance in the parties' rights and obligations, is not reasonably necessary to protect the legitimate interests of the party advantaged by it, and would cause detriment to a party if relied on).

Reasoning: The clause lets the supplier increase the fee unilaterally, at any time, by any amount, in its sole discretion, without notice, while denying the consumer any right to terminate in response. Section 25(1) of the Australian Consumer Law gives examples of terms that may be unfair, including a term that permits one party (but not the other) to vary the upfront price payable without the right of the other party to terminate the contract (s 25(1)(c)), and a term that permits one party unilaterally to vary the terms of the contract (s 25(1)(d)). This clause combines both: an unconstrained unilateral price-variation power with no notice and no corresponding termination right for the consumer, so it creates a significant imbalance in the parties' rights and obligations, is not reasonably necessary to protect any legitimate interest of the supplier (a capped or notice-qualified variation right would suffice), and would cause detriment to the consumer if relied on. It is therefore unfair under section 24 of the Australian Consumer Law, and (assuming the contract is a standard-form consumer contract as stated) void under section 23.