Be aware the following information relates to consumer transactions that occurred before 1 January 2011.  For information relating to transactions made after 1 January 2011 please refer to the Australian Consumer Law.

Unconscionable conduct is any behaviour which has the effect of unlawfully placing the other party to a transaction at a serious disadvantage.  Situations where conduct may be considered unconscionable include where:

• the bargaining strengths of the supplier and the consumer are unequal;
• the consumer was unable to understand any documents involved;
• the consumer was required to agree to conditions which were unnecessary to the transaction;
• any undue influence or pressure was exerted on the consumer; and,
• any unfair tactics were used against the consumer.

In practical terms, this means that a business person cannot use a particular weakness of a person in order to gain business.  Nor can the business person try to put the consumer at a disadvantage in order to gain business.  Examples of unconscionable conduct may include:

• not ensuring that a customer with limited reading skills or of limited English fully understood or agreed to any contract signed.
• using a friend or relative of the consumer to influence the consumer's decision;
• inducing the consumer to sign a blank contract;
• taking advantage of the consumer's sickness, age or disabilities;
• contracts which make false statements;
• one sided coontracts which are unclear about the consumer's right; and,
• using high pressure tactics such as refusing to take 'no' for an answer.

Be careful when signing contracts.  It is important to remember that consumers do not have to sign anything they don't agree to.  Even if the business uses a standard contract, consumers have a right to try and negotiate terms that suit them better.  Consumers also have the right to be informed about exactly what terms they will be agreeing to.