Australia

A company's terms and conditions seem unfair - they can cancel my subscription at any time but I can't. Is this enforceable?

s. 24 ACL
Unfair contract terms test
$10M
Max penalty for businesses
5 years
ACL applies to small biz contracts
s. 23 ACL
Applies to standard form contracts
The Short Answer

No, such a term is likely unfair and unenforceable under Australian consumer law because it creates a significant imbalance in rights and obligations.

What the Law Says

Australian law protects consumers and small businesses from unfair terms in standard form contracts — including subscription agreements.

Under the Australian Consumer Law (ACL), a term in a standard form consumer contract is unfair — and therefore void — if it causes a significant imbalance in the parties’ rights and obligations, is not reasonably necessary to protect the legitimate interests of the advantaged party, and would cause detriment (financial or otherwise) if applied or relied on.

A term allowing the company to cancel your subscription at any time while denying you the same right is a classic example of a term that creates a 'significant imbalance'. It removes your ability to rely on the service while giving the business complete discretion — which courts and regulators have consistently treated as suspect under the unfair contract terms regime.

The ACL applies to standard form contracts for consumers and small businesses (with fewer than 20 employees) where the upfront price is $300,000 or less (or $1 million for contracts involving goods/services of a kind ordinarily acquired for personal, domestic or household use).

Statutory Text

A term of a consumer contract is unfair if— (a) it would cause a significant imbalance in the parties’ rights and obligations arising under the contract; (b) it is not reasonably necessary in order to protect the legitimate interests of the party who would be advantaged by the term; and (c) it would cause detriment (whether financial or otherwise) to a party if it were to be applied or relied on.

Competition and Consumer Act 2010 (Cth), Sch 2, s. 24 — When a term is unfair
Statutory Text

A consumer contract is a contract for the supply of goods or services, or the sale or grant of an interest in land, to an individual whose acquisition of the goods, services or interest is wholly or predominantly for personal, domestic or household use or consumption.

Competition and Consumer Act 2010 (Cth), Sch 2, s. 23 — Meaning of consumer contract
Statutory Text

If a court finds that a term of a consumer contract is unfair, the court may make an order declaring the term void.

Competition and Consumer Act 2010 (Cth), Sch 2, s. 27 — Consequences of a term being unfair

What to Do

1

Check if your contract is a 'standard form contract' — i.e., prepared by the business with little or no opportunity for you to negotiate terms.

2

Review the cancellation clause alongside other key terms: does it let the business cancel without reason or notice, while requiring you to give long notice or pay fees?

3

Contact the business and ask them to justify how the term protects their legitimate interests — they must be able to show it’s reasonable and necessary.

4

If unresolved, complain to the ACCC or your state/territory consumer affairs agency.

5

As a last resort, apply to the Federal Court or Federal Circuit and Family Court for a declaration that the term is unfair and void.

Sources

Same Question, Other Jurisdictions

Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.