A company marketing a Y2K computer bug franchise and distributorships has been restrained from making certain claims after Australian Competition and Consumer Commission court action.
The Federal Court, Melbourne yesterday made final orders against Millennium Diagnostics (Victoria) Pty Ltd, Millennium Solutions (Australia) Pty Ltd and Millennium Solutions Group Australasia Pty Ltd. Orders were also made against Mr Michael Henderson, the director of Millennium Diagnostics (Victoria) Pty Ltd and Millennium Solutions (Australia) Pty Ltd.
The companies and Mr Henderson were involved in promoting and selling franchises or distributorships which claimed to provide IT services and computer software to deal with Year 2000 compliancy issues.
The Court declared that in promoting the franchises or businesses, the companies and Mr Henderson had committed several contraventions of sections 52, 53, 58 and 59 of the Trade Practices Act 1974.
The Orders restrain the companies and Mr Henderson from making further representations that: franchisees will be provided with computer software stock; franchisees will achieve estimated gross earnings of $600,000; the companies will provide business leads to franchisees; the companies have technical support staff and offices around Australia where this is not correct; the companies can supply infrastructure support to franchisees; the companies have a sponsorship or approval or any affiliation with a government or other body; the companies had approval to use the Year 2000 Industry Program logo.
The Court also made an order declaring that Millennium Solutions (Australia) Pty Ltd had contravened section 51AD of the Act by failing to provide a disclosure document to a franchisee, as required under the Franchising Code of Conduct.
In addition, the Court ordered the companies to pay refunds to particular franchisees, publish corrective advertisements in major daily newspapers, implement a corporate compliance program and pay the ACCC's costs.
The Federal Court, Melbourne yesterday made final orders against Millennium Diagnostics (Victoria) Pty Ltd, Millennium Solutions (Australia) Pty Ltd and Millennium Solutions Group Australasia Pty Ltd. Orders were also made against Mr Michael Henderson, the director of Millennium Diagnostics (Victoria) Pty Ltd and Millennium Solutions (Australia) Pty Ltd.
The companies and Mr Henderson were involved in promoting and selling franchises or distributorships which claimed to provide IT services and computer software to deal with Year 2000 compliancy issues.
The Court declared that in promoting the franchises or businesses, the companies and Mr Henderson had committed several contraventions of sections 52, 53, 58 and 59 of the Trade Practices Act 1974.
The Orders restrain the companies and Mr Henderson from making further representations that: franchisees will be provided with computer software stock; franchisees will achieve estimated gross earnings of $600,000; the companies will provide business leads to franchisees; the companies have technical support staff and offices around Australia where this is not correct; the companies can supply infrastructure support to franchisees; the companies have a sponsorship or approval or any affiliation with a government or other body; the companies had approval to use the Year 2000 Industry Program logo.
The Court also made an order declaring that Millennium Solutions (Australia) Pty Ltd had contravened section 51AD of the Act by failing to provide a disclosure document to a franchisee, as required under the Franchising Code of Conduct.
In addition, the Court ordered the companies to pay refunds to particular franchisees, publish corrective advertisements in major daily newspapers, implement a corporate compliance program and pay the ACCC's costs.