Franchising

ACCC helping franchising sector to get ready for the new code

The Australian Competition and Consumer Commission is helping the franchising sector to understand the new Franchising Code of Conduct ahead of its 1 January 2015 start date.

From 1 January 2015, the current Franchising Code will be repealed and replaced with a new Code which will apply to all franchise systems operating in Australia.

To help franchisors, current and prospective franchisees and their professional advisers to make sense of the new Code, the ACCC will be hosting a free interactive live webinar on 9 December 2014 at 12:00pm.

Federal Court declares cleaning franchisor engaged in unconscionable conduct

The Federal Court has declared that South East Melbourne Cleaning Pty Ltd (in liquidation) (formerly Coverall Cleaning Concepts South East Melbourne Pty Ltd) (Coverall Melbourne) engaged in unconscionable conduct in contravention of the Australian Consumer Law following action by the Australian Competition and Consumer Commission.

Coverall Melbourne was the Victorian franchisor of a national franchise system that establishes and operates professional cleaning services.

Proposed franchising powers set to boost code compliance

The game is set to change for operators engaging in serious breaches of the Franchising Code of Conduct with proposed enforcement powers increasing the stakes on 1 January 2015.

Based on the exposure draft of the new Code released in April 2014, the Australian Competition and Consumer Commission will be able to issue infringement notices of up to $8,500 and seek penalties up to $51,000 in the Federal Court for contraventions of the Code.

Misleading claims continuing concern for small businesses: ACCC launches latest small business in focus report

Misleading claims are a continuing issue for the small business sector, according to the Australian Competition and Consumer Commission’s latest Small business in focus report launched today by ACCC Deputy Chair Dr Michael Schaper at the COSBOA National Small Business Summit.

This report, the eighth in the series, includes the latest small business and franchising related complaints data, and highlights the ACCC’s work in the small business sector between 1 January and 30 June 2014.

ACCC takes action against cleaning franchisor alleging unconscionable conduct

The Australian Competition and Consumer Commission has instituted proceedings against Coverall Cleaning Concepts South East Melbourne Pty Ltd (Coverall Melbourne) alleging that it engaged in unconscionable conduct in contravention of the Australian Consumer Law (ACL).

The ACCC also alleges that Coverall Melbourne made false or misleading representations, engaged in conduct that was misleading or likely to mislead, and contravened the Franchising Code of Conduct. 

ACCC takes action against Electrodry alleging fake testimonials or reviews

The Australian Competition and Consumer Commission (ACCC) has instituted proceedings in the Federal Court against A Whistle (1979) Pty Ltd, the franchisor of the Electrodry Carpet Cleaning business, alleging that it was involved in the posting of fake online testimonials.

Electrodry is a franchised business that provides carpet, drapery, grout, upholstery and mattress cleaning services with over 100 franchises in Australia.

The ACCC alleges that Electrodry:

Big spike in small business contacts to competition regulator

The Australian Competition and Consumer Commission has launched the latest Small Business in Focus Report which outlines its work in the sector.

ACCC Deputy Chair Dr Michael Schaper said that the report highlights the ongoing activities of the ACCC to educate small business of their rights and responsibilities, and to take enforcement action where necessary.