Screen standard terms against the FTC Act unfairness test
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- Table each one-sided term the lawyer marks, and leave columns for injury, whether the consumer could avoid it, and any benefit the file states. Do not call a term unfair.
- What the lawyer must review
- The Commission has no authority under 15 U.S.C. § 45 or section 57a to declare an act or practice unfair unless it causes or is likely to cause substantial injury to consumers which is not reasonably avoidable by consumers themselves and is not outweighed by countervailing benefits to consumers or to competition. Public policy may be considered with the other evidence and may not be the primary basis. Section 45(a)(2) excepts banks, savings and loan institutions described in section 57a(f)(3), Federal credit unions, common carriers and air carriers, among others. There is no Australian-style unfair-contract-terms statute in this version. You decide whether the test is met, and whether the carve-out applies.
- Written for / version
- United States versionUSCth
Who does what
| Role | What they do |
|---|---|
| Assistance | Consider narrowly defined preparation support after confirming the tool’s capability and permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Open each relied-on authority independently. Confirm its existence, current status, proposition and any quotation or pinpoint reference.
- Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
- Verify the applicable jurisdiction and the version of each relevant law, rule or instrument in force at the material time.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.