ACCC institutes contempt of court proceedings against Allphones

The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court against Allphones Retail Pty Ltd alleging contempt of court.

The ACCC alleges that Allphones has breached orders which were made by Justice Foster in the Federal Court on October 9 2008.

The orders reflected the terms of two undertakings given by Allphones to the court which:

• prohibit Allphones from withholding consent to the assignment of an Allphones franchise on the basis that the franchisee will not sign a deed releasing Allphones from liability (undertaking 8)
• require Allphones to give the ACCC 7 days’ written notice of its intention to withhold consent to the assignment of an Allphones franchise on the basis that the new franchisee must enter into a new franchise agreement (undertaking 9).

The ACCC claims that Allphones breached undertaking 8 on one occasion and undertaking 9 on three occasions.

A directions hearing has been set down in the Federal Court in Sydney for August 21 2009.