Acting Commissioner for Consumer Protection David Hillyard advised that the investigation will examine various contracts offered by retirement village operators to see if they breach the "unfair contract terms" provisions of the Australian Consumer Law (ACL).
One focus of the investigation will be the 'deferred management fees' or 'deferred residency fees' often payable when a resident vacates their unit. The investigation will look at how clearly these exit fees are outlined in residents pre-contract documents and if they pass the fairness test under the ACL.
In the 2016-17 financial year of the 33 complaints investigated by Consumer Protection most related to contract disputes and the fees being charged by operators.
To read the announcement in full, click here.
Our Aged Care and Retirement Living team can assist providers who may be unsure if their contracts comply with the ACL and or other legislative requirements. To speak with or make an appointment with one of our lawyers, click here.