When penalties for unfair contract terms took effect on 9 November 2023, many businesses quietly reviewed their standard form contracts and moved on. Nearly three years later, regulators are testing the regime in court, and the results should prompt another look at the terms.

CashnGo: unfair terms in debt collection

On 31 August 2026, Justice Jackman of the Federal Court ordered Venture 5 Group Pty Ltd, which trades as online lender CashnGo, to pay a $3.5 million penalty in proceedings brought by ASIC. CashnGo admitted that terms in its standard form small amount credit contracts were unfair, and consented to the orders, including the penalty.

The key terms allowed CashnGo’s automated systems, after a consumer missed a repayment, to monitor the consumer’s bank account balance and repeatedly try to withdraw the overdue amount as soon as funds arrived, without notice of the timing, frequency or amount and without any way to opt out. Justice Jackman found the practice could, and at times did, leave consumers with less than $5 in their accounts.

CashnGo admitted 190,546 contraventions by making contracts containing unfair terms and at least 658,000 contraventions by applying or relying on them, all between 9 November 2023 and 30 June 2026. The Court declared limitation of liability and indemnity terms void from the start, and ordered that the default and authority terms be replaced from 14 September 2026 with terms that let consumers opt out.

The judge did not treat it as a back-office error. The contraventions, he said, were “not the result of isolated conduct by junior employees. They arose from systems, contractual terms and practices of CashnGo’s senior management and directors.”

Amazon: the right to change the deal

The ACCC’s case against Amazon raises a different and more widespread kind of clause. On 30 June 2026, the regulator commenced Federal Court proceedings alleging that Amazon Commercial Services Pty Ltd included five unfair terms in its Prime contracts with more than one million annual subscribers between November 2023 and August 2025. The terms allegedly allowed Amazon to make negative changes during the contract period without offering subscribers a remedy.

The ACCC alleges Amazon relied on those terms when it introduced advertising to Prime Video in Australia in July 2024. Subscribers who wanted to keep ad-free streaming had to pay an extra $2.99 a month, even though annual subscribers had already paid $79 upfront. The ACCC also alleges that the US entity Amazon.com Services LLC was knowingly concerned in the conduct. The allegations have not been tested in court.

The ACCC describes the case as one of its first contested matters under the penalty regime, and has named unfair terms in consumer and small business contracts, with a focus on harmful cancellation terms, as a compliance and enforcement priority for 2026–27.

A refresher on the law

A term in a standard form consumer or small business contract 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 it benefits, and would cause detriment if relied on. Courts must consider the contract as a whole and whether the term is transparent. Terms that let one party unilaterally vary the contract or the services supplied are listed in the Australian Consumer Law as examples of potentially unfair terms.

Since November 2023, it has been unlawful to propose, use or rely on an unfair term in contracts made or renewed from that date. Protection extends to small businesses with fewer than 100 employees or annual turnover under $10 million. For companies, maximum penalties per contravention are the greater of $50 million, three times the benefit obtained, or 30% of adjusted turnover during the breach period. As CashnGo’s contravention count shows, those maximums can multiply quickly across a large customer base.

Not just a consumer problem

For B2B suppliers such as equipment financiers, software-as-a-service providers, landlords and franchisors, the small business threshold catches a large share of Australian customers. Clauses allowing unilateral price or service changes, broad indemnities, one-sided termination rights and automatic renewals with hard-to-exercise cancellation are the obvious places to look.

What to do now

  • Identify every standard form template used with consumers and small businesses, including online terms and direct debit authorities.
  • Review variation clauses. Where you reserve a right to change terms or the service, give notice and a genuine right to exit without penalty.
  • Check that automated collection and billing systems do what the contract says and do not go further.
  • Remember that renewing or varying a contract after 9 November 2023 brings it under the penalty regime.

This article is general information only and is not legal advice. Readers should seek advice specific to their circumstances.