Now that the ACCC has taken JJ Richards to court for unfair contracts, it is a good opportunity to look at the typical waste contract and why the ACCC is getting involved. The recent formation of the National Waste and Recycling Council (NWRC) by the major players in the waste industry is akin to circling the wagons and defending the way they do business. Their credo seems similar to the tobacco industry attempting to keep the status quo in the face of mounting evidence against them. So what is the NWRC defending?
Let’s start with the JJ Richards contract terms that the ACCC is unhappy about:
As a small business I find it hard to fathom that I would ever treat a customer in this way. It clearly shows that the tactic of a waste company is to squeeze customers as hard as possible once they are on their books and rely on unfair automatic rollover clauses to keep them rather than through good service. What an awful way to do business.
Of course it is not only JJ Richards that uses these unfair tactics. The law changed on 12th November 2016 – it was amazing how many new three year contracts were sent out to customers on the 11th November to get in before the new law came in. If you are a small business, check your contract for the above clauses and the date it was lodged with you and get in contact with Fernlawn Environmental if you would like assistance in gaining a fairer deal.
The likes of Rubicon Global in the US are building profitable businesses based on good service and happy customers. One wonders how long it will be in Australia before we have a dominant broker/customer advocate to negotiate and manage contracts.