A Canberra-based internet service provider has been taken to court, accused of providing customers with unfair terms that enable the company to vary prices or terminate contracts without due procedure.
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The Federal Court case brought by the Australian Competition and Consumer Commission against ByteCard, better known as internet provider NetSpeed Internet Communications, is the first time the ACCC has commenced legal proceedings based exclusively on the new unfair contract terms provisions of the Australian Consumer Law, which came into effect in 2010.
The ACCC claims ByteCard’s standard form consumer contracts are unfair on three points, as they:
- Enable ByteCard to unilaterally vary the price under an existing contract without providing the customer with a right to terminate the contract;
- Require the consumer to indemnify ByteCard in any circumstance, even where the contract has not been breached, and the liability, loss or damage may have been caused by ByteCard's breach of the contract; and
- Enable ByteCard to unilaterally terminate the contract at any time with or without cause or reason.
The ACCC alleges the clauses are unfair, and should be declared void. The matter has been listed for a scheduling conference in Melbourne in June.
