Netdeen Pty Ltd - s.87B undertaking

Netdeen Pty Ltd is the Franchisor of the G.J. Gardner Homes franchise in Australia and overseas. G.J. Gardner Homes is a residential building franchise.

Netdeen has recently been the subject of an investigation by the ACCC.

The investigation followed complaints that Netdeen made representations to prospective franchisees between 2004 and 2006 regarding the significance of its buying power and specific capabilities of its building management software where these representations have not been substantiated.

Netdeen and its directors have acknowledged that the representations made by them may have been likely to mislead or deceive potential franchisees in contravention of section 52 of the Trade Practices Act 1974.

Netdeen and its directors have fully cooperated with the ACCC and have taken steps to resolve the ACCC's concern by offering a court-enforceable undertaking which requires them to take corrective steps which include:

• consumer redress for two of its former franchisees;
• the inspection and amendment of all its corporate materials containing the subject representations;
• publishing this notice on www.gjgardnerhomes.com.au, www.franchise.net.au and in the Franchising Magazine at the cost of Netdeen; and
• the establishment of a Trade Practices Compliance Program.

A full copy of this undertaking can be viewed at www.accc.gov.au