Plus500AU Pty Ltd v AghaeiRad

The Full Court of the Federal Court has dismissed appeals by Plus500AU Pty Ltd and its parent Plus500 Limited against a ruling that the arbitration clause in the company's standard form user agreement for contracts for difference trading was void. In Plus500AU Pty Ltd v AghaeiRad [2026] FCAFC 125, handed down on 16 September 2026, the Court unanimously upheld the primary judge's finding that the clause was an unfair contract term under sections 12BF and 12BG of the Australian Securities and Investments Commission Act 2001.

The customer had opened a CFD trading account with Plus500AU in August 2020 and lost the 111,948 dollars he deposited by June 2021. He later brought a representative proceeding under Part IVA of the Federal Court of Australia Act 1976, alleging misleading conduct, unconscionable conduct and breach of contract. Plus500AU and Plus500 Limited sought a stay of the class action to refer the dispute to arbitration under the Commercial Arbitration Act 2010 (NSW). The Court found the clause did not clearly disclose to customers that arbitration would prevent access to court or to a class action, and that arbitration was largely uneconomic for individual claims of that size.

The Court was careful to note that an arbitration agreement is not automatically void merely because it would prevent participation in a class action. The outcome turns on whether the particular term, viewed in its practical effect, causes a significant imbalance in the parties' rights and obligations without being reasonably necessary to protect the legitimate interests of the business offering it. The decision is confined to the specific clause and evidence before the Court, including complaint data showing the clause's practical operation.