The Franchising Code of Conduct is a mandatory industry code of conduct that has the force of law under the Trade Practices Act 1974.
The Department of Innovation, Industry, Science and Research assists the Australian Government to develop the law on franchising matters. Further information on DIISR’s role is available on its website, www.innovation.gov.au.
Last year, the federal Parliamentary Joint Committee on Corporations and Financial Services resolved to hold an inquiry into the Franchising Code of Conduct and related matters. The joint committee's report is available on its website. The ACCC submission to the inquiry is listed as submission no. 60 on the committee's website.
On 21 June 2009 the Government released an options paper seeking written comment on possible amendments to the Franchising Code of Conduct. After considering the submissions made to the options paper, the government released its response to the joint committee's report on 5 November 2009, which outlines a number of proposed reforms to the code.
On 27 November 2009 the Government announced the establishment of an expert panel on franchising and unconscionable conduct. The panel will provide advice to the Government on some outstanding issues raised in recent parliamentary inquiries into the Franchising Code of Conduct and the provisions of the Act that prohibit unconscionable conduct.
Purpose
The code aims to regulate the conduct of participants in franchising towards each other and to ensure that they are sufficiently informed about a franchise before entering into it. The code also provides a cost-effective dispute resolution scheme for franchisees and franchisors.
Role of the ACCC
Our role is to promote compliance with the code by helping people understand their rights and obligations under the code and the Trade Practices Act. We do this by developing educational material such as guidelines, articles and fact sheets as well as by giving presentations through our Outreach programs in each state and territory.
We are also responsible for investigating complaints and, where necessary, taking enforcement action against anyone who fails to comply with the code.
