The Australian Competition and Consumer Commission has filed proceedings in the Federal Court, Melbourne alleging Millennium Diagnostics (Victoria) Pty Ltd, Millennium Solutions (Australia) Pty Ltd and Millennium Solutions Group Australasia Pty Ltd engaged in misleading and deceptive conduct in connection with the promotion of franchises for Year 2000 Compliance computer software and technical support services.
The ACCC also alleges Millennium Solutions (Australia) Pty Ltd breached the mandatory franchising Code of Conduct.
The ACCC alleges Millennium Solutions:
- represented they had 350 technical support staff available in 100 locations in Australia as well as full marketing, administration and consultant support infrastructure when they did not;
- had no reasonable basis for claiming that distributors or purchasers of franchises could earn $600,000 per year;
- represented they had the sponsorship or approval of Federal Government bodies when they did not;
- represented distributors or purchasers of franchises required only basic computer knowledge and skills when in fact, a higher level of skill and understanding was required;
- represented distributors or purchasers of franchises would be provided with stock when they had no intention of supplying stock or reasonable quantities of stock within a reasonable period of time; and
- represented the products they promoted obviated the need for tailor made Year 2000 Compliance programs when in fact they have limited application and may not work on some computer systems;
- In addition, the ACCC alleges Millennium Solutions (Australia) Pty Ltd failed to provide a current disclosure document in the form of Annexure 1 to the Franchising Code of Conduct in response to a written request.
The ACCC is also taking action against the director of Millennium Diagnostics (Victoria) Pty Ltd and Millennium Solutions (Australia) Pty Ltd, Mr Michael Henderson, for allegedly being knowingly concerned in the alleged breaches.
The ACCC has sought an interlocutory injunction against the companies and Mr Henderson until such time as the substantial case alleged by the ACCC is determined. The interlocutory application has been listed for hearing at 10.15am on 26 July 1999.
The ACCC is seeking declarations that the conduct as alleged constitutes breaches of sections 51AD, 52, 53, 58 and 59 of the Trade Practices Act 1974, injunctions, findings of fact and refunds to franchisees.