---
title: "Screen standard terms against the FTC Act unfairness test"
url: "https://ailawframework.com/practice/competition-and-consumer-law/audit-a-standard-form-contract-for-one-sided-terms/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A29-T1-R6-US"
practice_area: "Competition & Consumer Law (ACCC / ACL)"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

# Screen standard terms against the FTC Act unfairness test

> 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.

Canonical page: https://ailawframework.com/practice/competition-and-consumer-law/audit-a-standard-form-contract-for-one-sided-terms/united-states  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Competition & Consumer Law (ACCC / ACL)](https://ailawframework.com/practice/competition-and-consumer-law.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| 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 | United States |
| Applies to | [Audit a standard-form contract for one-sided terms](https://ailawframework.com/practice/competition-and-consumer-law/audit-a-standard-form-contract-for-one-sided-terms.md) |

## Checking plan

- What the AI does: 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.
- Basis: Checked against the linked sources on 22 October 2026. Confirm the current instrument before reliance.

## Notes

- Do not treat a one-sided term as unfair because it is one-sided.
- A bank or carrier file may sit outside the Commission's section 5. Read § 45(a)(2) before you use this screen.

## Sources

- [15 U.S.C. § 45, FTC Act section 5](https://www.law.cornell.edu/uscode/text/15/45) (checked 2026-10-22)
- [ABA Formal Opinion 512, Generative Artificial Intelligence Tools (29 July 2024)](https://www.americanbar.org/content/dam/aba/administrative/professional_responsibility/ethics-opinions/aba-formal-opinion-512.pdf) (checked 2026-10-22)
- [ABA Model Rule 1.1, Competence](https://www.americanbar.org/groups/professional_responsibility/publications/model_rules_of_professional_conduct/rule_1_1_competence/) (checked 2026-10-22)

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*