ACCC Action Signals Zero Tolerance on Unfair Terms in NDIS Contracts

On 12 June 2025, the ACCC secured a court-enforceable undertaking from Mable Technologies after finding multiple unfair terms in its standard-form agreements. While Mable is a platform provider, the ACCC’s action signals broader scrutiny across the NDIS sector—as reflected in its current compliance priorities.

Key issues included:

1. Auto-Approval of Support Logs if not disputed within 24 hours;
2. Exit Penalties of up to $5,000 for moving off-platform;
3. One-sided variation rights (fees, terms, etc); and
4. Broad Exclusions of liability and recovery of legal costs from participants.

This follows the ACCC’s ongoing focus on power imbalances and participant protections in regulated care markets.

What This Means for NDIS Providers

1. Your registration carries ACL obligations – As a registered provider, you are required to comply with all applicable laws—including the Australian Consumer Law (ACL). This includes ensuring that your service agreements do not contain unfair terms.
2. Unfair contract terms are now illegal – Since November 2023, using or relying on unfair terms can trigger civil penalties. It is no longer enough to argue that such terms are merely void.
3. Participants are considered vulnerable consumers – The ACCC has made clear that the imbalance of power between providers and NDIS participants raises the bar for fairness, transparency, and consent in contracting.

Action Required

Registered providers should now:

1. Review all standard-form service agreements – Pay close attention to clauses related to unilateral changes, financial penalties, consent mechanisms, liability exclusions, and indemnities.
2. Remove or amend any clauses that may be unfair – If a term shifts risk or cost to the participant without genuine negotiation, it is likely to be challenged.
3. Ensure participants have meaningful, informed consent – Providers should be able to demonstrate that participants (or their legal substitute decision-makers) understand and accept key terms.
4. Incorporate ACL compliance into quality and risk systems – Include unfair contract term reviews in your quality governance mechanisms. Staff should be trained on ACL obligations including its interface with the NDIS Act 2013 (Cth).
5. Document your compliance steps – If challenged, evidence of active review and good-faith amendment will be critical.

Registered providers should act now to ensure their documents align with ACL expectations—before issues escalate into formal investigations.

Need support?

We can provide a checklist to assist your team to review your agreements, provide template service agreements or review your agreements for you. For support, contact Amber Crosthwaite at 0400 143 677 or amber.crosthwaite@lavan.com.au.

Disclaimer

The information contained in this publication does not constitute legal advice and should not be relied upon as such. You should seek legal advice in relation to any particular matter you may have before relying or acting on this information. The Lavan team are here to assist.