A contract contains a term enabling the seller to unilaterally terminate the contract and levy a disproportionately excessive security deposit on the consumer. Under the Consumer Protection Act, 2019 such a term is treated as:

The Consumer Protection Act, 2019 defines an 'UNFAIR CONTRACT' in Section 2(46) to include terms that require manifestly unreasonable and one-sided obligations; impose a disproportionately excessive, penal or unconscionable security deposit or penalty; or permit unilateral termination without reasonable cause. Such contracts are VOIDABLE at the option of the consumer (Section 49). This gives consumer-fora a statutory tool against standard-form unfair terms. The definition lists several objectionable terms beyond deposit and termination, all aimed at correcting bargaining imbalance.