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Fujifilm Business Innovation Australia Pinged For Unfair Contract Terms

Fujifilm has been found guilty of entering into thousands of contracts with businesses that have unfair contract terms.

The Federal Court today declared that 38 different terms used in contracts entered into by Fuji are unfair. The Court declared these unfair contract terms void and unenforceable.

Fuji was ordered to stop enforcing these terms in current small business contracts and to cease using these terms in contracts.

The contracts related to deals between Fuji and small businesses for printers and software. The unfair terms include words allowing automatic renewals, excessive exit fees, and unilateral price increases.

It is estimated that Fuji has entered into or renewed approximately 34,000 contracts with these terms in them, many of which are still active.

The ACCC first launched proceedings against Fuji Xerox Australia (now Fujifilm Business Innovation Australia) and Fuji Xerox Finance (now Fujifilm Leasing Australia) in October 2020, after receiving a number of complaints.

“We took this court action because Fuji’s unfair contract terms allowed this large company to leverage the significant power imbalance between it and small business customers to impose unnecessary and unjustifiable terms on these businesses,” ACCC Deputy Chair Mick Keogh said.

“Fuji’s unfair contract terms were imposed on many small businesses who had signed contracts containing these terms, and Fuji took action, including litigation, to enforce these terms.”

“We continue to strongly advocate for law reform to prohibit unfair contract terms and enable the Court to impose penalties in cases where such terms are imposed and enforced against small businesses, as here, or consumers.”

The Court has ordered Fuji to contact current customers with relevant contracts and ascertain if they are small businesses and make them aware of the orders. Fuji must also publish information about these orders on its website, and pay part of the ACCC’s court costs.

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