The Australian Competition and Consumer Commission has commenced legal proceedings in the Federal Court against franchisors Top Snack Foods Pty Limited and several of its employees.
The ACCC is concerned about the alleged misrepresentations made by Top Snack Foods to franchisees about the level of profitability and projected losses.
The ACCC has alleged contraventions of sections 52 and 59 of the Trade Practices Act 1974. The ACCC is seeking injunctions and other orders against both Top Snack Foods and the other named respondents.
Section 59 of the Act provides that a corporation shall not make false or misleading representations about the profitability or risk or any other aspect of any business activity that the corporation has represented may be run from a persons place of residence. Section 52 prohibits misleading or deceptive conduct in trade or commerce.
The ACCC emphasises that it has no issue with the retailing practices of any franchisee, or with the quality of the goods or the retail prices.
A directions hearing will be held in Sydney on 9 October 1996.
The ACCC is concerned about the alleged misrepresentations made by Top Snack Foods to franchisees about the level of profitability and projected losses.
The ACCC has alleged contraventions of sections 52 and 59 of the Trade Practices Act 1974. The ACCC is seeking injunctions and other orders against both Top Snack Foods and the other named respondents.
Section 59 of the Act provides that a corporation shall not make false or misleading representations about the profitability or risk or any other aspect of any business activity that the corporation has represented may be run from a persons place of residence. Section 52 prohibits misleading or deceptive conduct in trade or commerce.
The ACCC emphasises that it has no issue with the retailing practices of any franchisee, or with the quality of the goods or the retail prices.
A directions hearing will be held in Sydney on 9 October 1996.