Treasury has opened consultation as it reviews changes to unfair contract term legislation that expanded protection for small businesses and consumers.

The changes took effect on November 9 2023, a year after federal parliament passed the Treasury Laws Amendment (More Competition, Better Prices) Act 2022.

Financial Services Minister Daniel Mulino says the government is now “reviewing the operation of the …  reforms and examining how these protections can be extended to all franchisees”.

A consultation paper says the reforms amended both the Australian Consumer Law and the Australian Securities and Investments Commission Act to strengthen protections against unfair terms.

It says the most significant changes included new civil penalty provisions for breaches.

Submissions are sought on 16 questions, including on effectiveness of the civil penalty regime; impact on unfair term-related class action activity; and the compliance cost burden.

The closing date is March 17. See the paper here.