New online information outlining the Australian Competition and Consumer Commission's processes for investigating complaints about franchisors has been launched.*
The ACCC's position on certain franchising investigations which have been the subject of recent public comment are also discussed.
ACCC Chairman, Mr Graeme Samuel, said the ACCC receives about 1000 complaints about franchising systems each year.
"While a number of those complaints do not fall within the scope of the Trade Practices Act or the Franchising Code of Conduct (a mandatory code under the Act) many complaints in this sector are, in the ACCC's view, able to be resolved by the mediation process provided by the code.
"However, where this is not the case, allegations are subject to a rigorous investigation process – which may result in further action, such as administrative resolution or litigation.
"For a number of reasons, including fairness to parties subject to investigation, the ACCC does not generally comment on the nature or substance of investigations that are not concluded with an administrative settlement or through litigation," Mr Samuel said. "Unfortunately, this silence may be misunderstood and wrongly perceived as inaction by the ACCC in such circumstances."
The purpose of providing this new information is to dispel any misinformation regarding the ACCC's investigation and enforcement process. Therefore, the ACCC will be limiting our comment to investigated matters that are already in the public domain.
"The provision of this information sends a clear message to the franchising sector that the ACCC will vigorously and transparently investigate and pursue breaches of the Act and the Franchising Code of Conduct," Mr Samuel said.