Retirement villages accused of gouging older Australians in ‘corporatised elder abuse

https://www.abc.net.au/news/2024-09-30/retirement-villages-accused-of-gouging-older-australians/104407150

2 Comments

  1. I’ve never thought about how these villages work. Residents are forced to renovate the apartment when they move out and have to pay a steep (percentage based exit fee). With the renovations and the “exit Fee” many people are left with less than what they paid for the property when they moved in.

  2. There is a simple solution for this: have the consumer legislation **outlaw abusive contract terms** especially in those predefined contracts where there is an imbalance of power. Also **enforce** that and. That should help everyone in that deals with abuses in others areas.

    Some examples from overseas:

    >Standard contract terms
    >
    >Standard contract terms facilitate commercial transactions and can be useful in setting out the rights and obligations of the parties under a given contract. However, sellers and suppliers possess a considerable advantage over consumers by defining contract terms in advance without individual negotiation.
    >
    >Unfair contract terms
    >
    >Standard contract terms have to be drafted in plain intelligible language and ambiguities are to be interpreted in favour of consumers.
    >
    >Contract terms are unfair and, therefore, not binding on consumers if, contrary to the requirements of good faith, they cause significant imbalance in the parties’ rights and obligations to the detriment of the consumer. A list of examples of terms that may be regarded as unfair illustrates this general requirement (see the [Annex to the Directive](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A31993L0013#d1e32-33-1) ).
    >

    Source: https://commission.europa.eu/law/law-topic/consumer-protection-law/consumer-contract-law/unfair-contract-terms-directive_en