Fair Trading Act 1987

A supplier must, before supplying a consumer with goods or services, take reasonable steps to ensure the consumer is aware of the substance and effect of any term or condition relating to the supply of the goods or services that may substantially prejudice the interests of the consumer.

Without limiting subsection (1), a term or condition relating to the supply of goods or services to a consumer may substantially prejudice the interests of the consumer if—

the term excludes the liability of the supplier, or

the term provides that the consumer is liable for damage to goods that are delivered, or

the term permits the supplier to provide data about the consumer, or data provided by the consumer, to a third party in a form that may enable the third party to identify the consumer, or

the term requires the consumer to pay an exit fee, a balloon payment or other similar payment.

The regulations may provide for—

what may or may not constitute reasonable steps taken by suppliers to ensure consumers are aware of the substance and effect of terms or conditions relating to the supply of goods or services, and

the type of terms, or classes of terms, that may substantially prejudice the interests of consumers, and

the type of terms, or classes of terms, that do not substantially prejudice the interests of consumers, and

any other requirements in relation to the way in which consumers must be made aware of terms and conditions relating to the supply of goods or services that may substantially prejudice the interests of consumers, and

exemptions from the requirements of this section.