Four pamphlets explaining unconscionable conduct in business have been issued today by the Australian Competition and Consumer Commission.
The publications target those four areas where the ACCC's experience suggests unconscionable conduct is more likely to occur: the supply of goods to major retail chains, retail tenancy leases, franchises and small business loans.
The ACCC describes unconscionable conduct in business transactions as: "all about a stronger party engaging in unacceptable business conduct when the transaction involves a weaker party who is exploited".
Any of the following may in appropriate circumstances, fall into the realm of unconscionable conduct in business: being unreasonable, acting harshly, being oppressive, lacking good faith, bullying, or being thuggish.
Where unconscionable conduct has occurred a court may order the whole or part of a contract to be set aside and that refunds be made to a person who has suffered loss or damage as a result of unconscionable conduct.
The pamphlets have been produced for the small business operator. They provide guidance as to where a reader may seek further information from legal and financial professionals. They also provide contact details for various ombudsman schemes and other mediation services.
"This important set of pamphlets is available from the ACCC, and I recommend their reading to all small business operators", ACCC Chairman, Professor Allan Fels, said today.
"Unconscionable conduct is unacceptable. It works against fair and competitive markets – ultimately to the detriment of the consumer."
Copies of the unconscionable conduct pamphlets can be obtained through the Publishing Unit of the Australian Competition and Consumer Commission in Canberra.Another ACCC initiative for small business on Trade Practice issues is the Competing Fairly Forum covering advertising and selling. A satellite broadcast to more than 90 towns across rural and regional Australia will be held on Tuesday 2 October at 6.30 pm.