Potential franchise holders with Ice Creameries of Australia Pty Ltd will receive greater disclosure of the workings and structure of the company under interlocutory orders granted by Justice Jeffrey Spender in the Federal Court, Brisbane.
The consent orders are based on the exposure draft of the Franchising Code of Conduct which is shortly to be prescribed following amendments to the Trade Practices Act. The Australian Competition and Consumer Commission instituted proceedings against the company; former managing director, David Atchison; national marketing manager, John Berry; and national products manager Jenni Berry in March.
The ACCC alleged the company, Atchison and the Berrys engaged in misleading, deceptive and false conduct in connection with the promotion and sale of Great Australian Ice Creamery franchises. It is also alleged that ICA engaged in exclusive dealing conduct, requiring its franchisees to purchase stock and equipment and ongoing supplies through nominated suppliers.
It is alleged that ICA then received rebates from these suppliers. The interlocutory orders were made with the consent of the parties during the first directions hearing. The respondents are restrained until the matter's trial from making a number of representations to promote and sell GAIC franchises.
The matter returns to the Federal Court, Brisbane for further directions on 25 June 1998.