Legitimate interests and unfair terms: the other threshold test
University of Western Australia
Faculty of Business and Law
School of Law and Justice
The Australian Consumer Law provides protection to Consumers against unfair terms. The rule includes elements that are a familiar part of the common law of contract in the rule against the restraint of trade. The case law and academic writing on restraint of trade focuses on the reasonableness of the protection provided by the term. Whereas the other part of the rule: the legitimacy of the protected interest, receives less attention. Given the relatively smaller impact of consumer transactions it is suggested that the legitimacy of the protected interest is a more important test under the unfair terms rule.