Thursday, 22 October 2020 13:00

Fuji Xerox in court over unfair contract allegations Featured

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Fuji Xerox Australia has been taken to court by the competition regulator, the ACCC, over allegations of unfair contract terms for small businesses.

The Australian Competition and Consumer Commission has alleged that in total nine types of Fuji’s standard form small business contracts contain 173 unfair contract terms, and there are 31 different terms which are unfair, including automatic renewal terms, excessive exit fees and unilateral prices increases.

The ACCC said in a statement on Thursday that the terms have been used in contracts between the printing compny and its small business customers for the supply of printing goods and services and technical assistance since at least October 2018.

“We have received a number of complaints from small businesses alleging that some of the terms in Fuji’s contracts have caused them significant financial harm,” ACCC Deputy Chair Mick Keogh said.

“Some of the unilateral variation terms allow Fuji to modify contracts by creating new rights and obligations, including increasing prices, without notifying its customers and without giving them any corresponding right to negotiate or reject.”

Keogh said “the ACCC will argue that the unfair terms in these contracts cause a significant imbalance in the rights and obligations of Fuji and the small businesses they contract with.”

“This court action by the ACCC should prompt all other traders in the printing support industry to review their standard form contracts and make any necessary changes to remove unfair contract terms," he cautioned.

The ACCC is seeking declarations that the terms in the existing contracts between Fuji and its small business customers are unfair and therefore void, and an injunction to prevent Fuji from relying on these terms in its current contracts or entering into future contracts that contain those terms.

The Commission is also seeking an order for a corrective notice, a compliance program and costs.


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Peter Dinham

Peter Dinham - an iTWire treasure is a mentor and coach who volunteers also a writer and much valued founding partner of iTWire. He is a veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

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