JV Mobile Pty Ltd - s.87B undertaking

JV Mobile provides licences to JV Mobile retailers to own and operate stores using the name ‘JV Mobile’ in Melbourne, Sydney, Adelaide and Brisbane. JV Mobile Retailers supply mobile phone airtime and retail mobile phones and accessories purchased through JV Mobile.

The ACCC was concerned that JV Mobile was promoting and advertising its business network as a franchise and had requested and/or received payments pertaining to a franchise business from JV Mobile Retailers and yet had failed to provide JV Mobile Retailers with a disclosure document as required by the Franchising Code of Conduct.

In response to the concerns of the ACCC, JV Mobile provided the ACCC with court-enforceable undertakings to:

• formally structure all new agreements with JV Mobile Retailers as franchise agreements and provide the opportunity for existing JV Mobile Retailers to structure their existing agreements as franchise agreements in accordance with the Franchising Code, including, particularly:
• the provision of disclosure documents;
• dispute resolution and termination procedures; and
• a cooling off period;
• implement a trade practices compliance program that includes complaints handling procedures and practical trade practices training focusing on the Franchising Code;
• place an article in a national Vietnamese newspaper, Nhan Quyen, outlining key rights and obligations under the Franchising Code;
• mediate or attempt to mediate any current disputes with former JV Mobile Retailers in good faith.