Court actions by the Australian Competition and Consumer Commission had established a wider definition of unconscionable conduct in business, providing better protection for smaller businesses dealing with bigger business, ACCC Commissioner for Small Business, Mr John Martin, said today.
These actions had the potential to "significantly improve the position of retail tenants in their dealings with landlords", Mr Martin told the Australian Retailers Association Retail Tenancy Forum.
"Well before the outcome of these cases however, there had been clear indications from discussions with groups such as the Property Council that the unconscionable conduct provisions are being taken seriously by sophisticated larger businesses.
"These businesses have developed comprehensive compliance arrangements to avoid breaching this area of the Trade Practices Act.
"However there are indications that awareness among 'second' and 'third' tier landlords about their responsibilities under the TPA is much lower".
Following on from the ACCC's success in the Court there has been an increased number of inquiries about unconscionable conduct. The ACCC emphasises ways these problems can be avoided in the first place, or where they do become a problem be resolved without recourse to Court action, Mr Martin said.
"In the ACCC's experience, education is a key element in ensuring compliance with the TPA. This is particularly so when the subject matter is as complex as unconscionability", Mr Martin said.
"Now the ACCC is developing some 'high impact' ways to help people understand the law of unconscionable conduct".
These included the Competing Fairly Forums, a program of local forums held in regional towns in all States throughout Australia. The forum featuring the ACCC Chairman Professor Allan Fels is focussed around a video presentation and discussion via satellite.
Arrangements are now in train for the next Forum to be held in May with links to 70 regional towns. The main topic for this forum will be unconscionable conduct.