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The Australian Competition and Consumer Commission (ACCC) has accepted a section 87B undertaking from Express Mobile Services Australia Pty Ltd (Express Mobile Services) in relation to Express Mobile Services failing to comply with certain requirements of the Franchising Code of Conduct, as well as making potentially false or misleading representations in its brochures, on its websites and in its advertisements on other websites to prospective franchisees.
Express Mobile Services is a mobile professional services franchise business with multiple divisions across Australia. The ACCC was concerned that Express Mobile Services' franchise agreements did not meet the requirements of the Franchising Code of Conduct because they contained waivers of verbal or written representations, in contravention of section 51AD of the Competition and Consumer Act 2010 (the Act).
The ACCC was also concerned that Express Mobile Services made representations likely to mislead or deceive prospective franchisees, and Express Mobile Services acknowledges that by engaging in this conduct it may have contravened sections 18 and 29(1)(l) of the Australian Consumer Law, being Schedule 2 to the Act.
To address the ACCC's concerns, Express Mobile Services has provided the ACCC with a court-enforceable undertaking that it will:
not engage in the same or similar conduct for three years;
provide current and prospective franchisees with franchise agreements and disclosure documents that comply with the Franchising Code of Conduct;
establish and implement a Consumer Law Compliance Program, which includes formal training of employees and master franchisees.