Company or individual details
- Australian Loans Management Pty Ltd080 018 891
The Australian Competition and Consumer Commission has accepted court enforceable undertakings from Australian Loans Management Pty Ltd (ALM) and Active Money (Aust) Pty Ltd (AM).
ALM promoted and sold “licence agreements” for a finance broking business called “Active Money”. ALM stated that these licence agreements were not franchising agreements.
ALM also failed to comply with the Franchising Code of Conduct (the Franchising Code) when entering into existing franchise agreements and when dealing with prospective franchisees.
ALM has admitted that its licence agreement is a franchise agreement and that it did not comply with the Franchising Code.
It also admitted it misled franchisees by stating that the licence agreement was not a franchise agreement which potentially misled franchisees into believing that they were not entitled to the rights and remedies afforded by the Franchising Code.
ALM and AM have undertaken to implement measures to ensure future compliance with the Franchising Code, to provide existing franchisees with a copy of the Franchising Code, a disclosure document and a proposed franchise agreement that complies with the Franchising Code.
ALM and AM will also provide existing franchisees with the opportunity to cancel their existing licence agreement and obtain a full refund of all monies paid to ALM.
Although AM did not engage in the admitted contravening conduct, it also offered an undertaking to the ACCC because ALM advised that going forward it intends for AM to be the franchisor.