ss. 51AD, 52. Alleged breach of the Franchising Code of Conduct and misleading and deceptive conduct
4 March 2005: the ACCC instituted proceedings in the Federal Court, Adelaide, against Office Support Services International Pty Ltd and its sole director, Mr Ian Lesley Scarffe, for alleged breeches of the Franchising Code of Conduct in connection with the sale of computer and electronic equipment cleaning services franchises.
The ACCC alleges that the company failed to provide a disclosure document or a copy of the Franchising Code of Conduct to franchisees at least 14 days before entering into the franchisee agreements and by providing documents that were purportedly disclosure documents but which failed to comply with the requirements of the code.
The ACCC also alleges that the company contravened s. 52 of the Act by making misleading and deceptive representations in the promotion and sale of franchises, including representations as to the origins, trading history, customer base and profitability of the franchise. The ACCC further alleges that Mr Scarffe aided and abetted the alleged contraventions by Office Support Services International
The ACCC is seeking declarations, injunctions, compliance training for Mr Scarffe, findings of fact and costs. The matter has been listed for a directions hearing on 27 April 2005.
30 March 2005: Directions hearing—adjourned from 30 March to 27 April to 23 May, to allow parties to attempt settlement.