New laws on contract terms take effect

The news: New laws banning unfair contract terms come into effect today, with protections for small businesses and consumers aimed at leveling the playing field in negotiations and agreements.

The numbers: The reforms give regulators authority to seek court penalties for businesses that use unfair terms in standard contracts. Under the laws, the definition of small business will include firms with less than 100 employees (compared to less than 20 employees previously), or an annual turnover of less than $10 million.

What they said: "Big firms who are doing the right thing have nothing to fear from the new laws, but these changes will help small businesses stand up to big corporates who use unfair terms in take-it-or-leave-it contracts,” Minister for Small Business Julie Collins said in a statement.