
The New South Wales government is planning to create a retail watchdog to to protect small shop owners and tenants from unscrupulous landlords.
The government says that some landlords have been forcing rent increases of up to 80% on some small shop owners, evicting many and forcing others into bankruptcy.
An office of the Retail Advocate is proposed with powers to seize documents from shopping centre cartels and investigate alleged unconscionable tactics.
The advocate would be empowered to prosecute cases against landlords on behalf of struggling tenants who cannot afford to fight it out in the courts.
The laws are being proposed following a rise in the number of small shop tenants being forced into bankruptcy through unethical - and often illegal - tactics being employed by shopping centre landlords.
Sydney's Daily Telegraph newspaper reports that at least three cases a day are being referred for mediation or arbitration through the Administrative Appeals Tribunal.
Small Business Minister Joe Tripodi said the proposed laws would defend small operators from corporate greed.
"Some shopping centre landlords have no heart when dealing with their tenants," he added. "Stories of people losing homes, experiencing marriage break-ups and suffering nervous breakdowns are far too common.
"Retailers fighting their landlords are at a disadvantage - landlords take on teams of lawyers while retailers are forced to work formidable hours just to pay the rent. Our proposed retail advocate would have the power to investigate cases, and in some cases, fight on the tenant's behalf in court."
Last year there were more than 6000 complaints made to a tenants' hotline by small businesses facing hardship at the hands of corporate landlords.
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