ACCC Wants Canberra to Adopt EU-Style Rules for Unfair Business Practices
Synopsis
The ACCC is calling on Canberra to consider EU-style rules, including a blacklist of unfair business practices, to give Australian small businesses stronger protection.
Key Highlights
- The ACCC wants Canberra to adopt tougher rules on obligations that protect small businesses from unfair trading practices.
- The proposal also contemplates an EU-style blacklist of banned business conduct.
- The ACCC also backs a wider ban on unfair trading practices against small businesses.
- The Treasury conducted a consultation in 2026 on protections for small businesses and franchisees, receiving 67 submissions.
- Business groups say clearer rules could enable more businesses to challenge rude treatment without going through expensive court cases.
Canberra is weighing reforms that would give greater protection to Australian small businesses against late payments, commercial retaliation and other unfair trade practices.
The ACCC has cited European and Japanese rules as potential models for Australia. The regulator is calling for a general ban on unfair trading practices, along with clearer regulations that define specific acts to be banned.
The Treasury's review is considering protections for small businesses in their dealings with other firms, including when they supply goods or services to larger companies.
What Would an EU-Style Blacklist Look Like?
The ACCC has put forward one reform that is similar to models established by the European Union for addressing unfair trading practices in agri-food supply chains.
The EU model contains a black list of 10 explicitly prohibited practices including some form of late payment, commercial retaliation against suppliers exercising their rights and short-notice cancellation.
A further group of practices is only permitted if the parties expressly agree in advance to them. They include the ability to return unsold merchandise without charge, and to pass off promotional and advertising expenses onto suppliers.
The ACCC believes it has seen similar behaviour impacting Australian small business suppliers. Blacklists are pretty straightforward, that is as opposed to putting the onus on a small business to make a broad argument about whether an action is fair, they could be left with clear practices that are banned.
Late Payments are a Serious Problem
One of the issues around unfair business practices is late payment. Australian Small Business and Family Enterprise Ombudsman Kate Carnell has emphasised that the problems can extend beyond not meeting a payment deadline. Businesses suffer from agreed terms that are unrealistically lengthy, still longer payment terms, even breaches of agreed terms and further additional requests followed by disputes that delay invoices going to ‘paid’.
The Ombudsman has previously received complaints regarding conduct pre-contract. Take the example of a salesperson making a promise verbally that then does not make it into the written agreement. So a contract can appear reasonable in isolation, but the conduct surrounding the deal may generate problems for a small business.
Small Business Groups Want Clear Rules
These organisations are however adamant that the regulations should be black and white. COSBOA has supported clear prohibition and identification of practices that should never be engaged in.
Chief executive Skye Cappuccio said the law should make particular practices that are disallowed in the sector easier to challenge by smaller firms. Nevertheless, she agreed that if protections are introduced, they need to be enforceable but without small businesses having to go through expensive court cases.
The ASBFEO argue for certain protections in addition to a principles-based ban. This could still leave regulators free to act against new forms of unfair behaviour, as they would not have to base their findings on a list.
What Happens Next?
The ACCC proposal occurs in the context of broader changes to Australia’s unfair trading rules. In July 2026, Parliament enacted legislation establishing a broad prohibition on unfair trading practices, with the general consumer-oriented prohibition to come into force on 1 July 2027.
Treasury’s individual review separately looks at how protections might apply to small businesses and franchisees when they make business-to-business transactions. The consultation closed on 10 July 2026, and the submissions (67 in total) were published on 18 September.
The Implications for Entrepreneurs and Businesses in Australia
More protections mean small businesses would have less ambiguity in dealing with bigger customers, suppliers and fellow businesses. Areas including payment terms, contract negotiations etc., cancellations and supplier relationships may come under more scrutiny.
The potential sea change for entrepreneurs could be that they will have clear benchmarks of what conduct is beyond the pale. However, those final rules have yet to be finalized and the government will decide whether any further safeguards must be put in place for business-to-business transactions.
Source: SmartCompany
At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.
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