ASEAN For Business of September 2025 - The Hidden Costs of Unfair Contract Terms, Rebuilding Consumer Trust in the ASEAN Market
- Canada-ASEAN Business Council (CABC)
- Oct 8
- 1 min read
In ASEAN’s fast-growing and diverse markets, contracts are more than legal formalities, they are the foundation of trust between businesses and consumers. Yet, when agreements include unfair terms, such as hidden clauses, overly punitive penalties, automatic renewals, or one-sided termination rights, they can quietly erode consumer confidence, damage reputations, and undermine the broader business ecosystem.
These unfair terms are often buried in long, jargon-filled contracts presented on a “take-it-or-leave-it” basis, leaving consumers little room to understand or negotiate. In the digital economy, this risk extends to online platforms and apps, where design tactics can mislead consumers or obscure key obligations.
The consequences are far-reaching. Once trust is broken, consumers are unlikely to return, recommend the business, or engage in future transactions. Negative experiences spread quickly through online reviews and social media, amplifying reputational damage.
For businesses across ASEAN, prioritizing fairness and transparency in contracts is not just about compliance, it is a cornerstone of sustainable growth. Clear and equitable agreements help build loyalty, protect brand reputation, and support a healthier, more resilient market where both consumers and businesses can thrive.
