ACCC Update David Salisbury GM Consumer & Small Business - - PowerPoint PPT Presentation

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ACCC Update David Salisbury GM Consumer & Small Business - - PowerPoint PPT Presentation

Nov 25, 2023 271 likes •445 views

ACCC Update David Salisbury GM Consumer & Small Business Strategies National Franchise Convention Legal Symposium 11 October 2015 The ACCC Independent statutory body Promotes compliance with CCA (including Franchising Code)

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ACCC Update

National Franchise Convention Legal Symposium 11 October 2015

David Salisbury GM – Consumer & Small Business Strategies

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The ACCC

8 October 2015

Conference 3

  • Independent statutory body
  • Promotes compliance with CCA (including Franchising Code)
  • Franchising Code is an enforcement priority in 2015
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Franchising Code

8 October 2015

Conference 4

  • New Code from 1 January 2015
  • Key changes:

– Obligation to act in good faith – Financial penalties & infringement notices – Greater marketing fund disclosure

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The Code – ACCC role

8 October 2015

Conference 5

  • Provide guidance
  • Investigate breaches
  • Take enforcement action
  • 2015: more than 750 franchising ‘contacts’
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Complaints

8 October 2015

Conference 6

  • Misleading conduct
  • Unconscionable conduct
  • Failure to comply with disclosure requirements
  • Contract disputes
  • Good faith
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Compliance checks (“audits”)

8 October 2015

Conference 7

  • 13 audits this year / 75 since 2011
  • Can compel a franchisor to provide documents
  • Found most franchisors are compliant with Code
  • Next round of audits after 31 October 2015
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Enforcement action

8 October 2015

Conference 8

  • Coverall
  • Sensaslim
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Penalties & infringement notices

8 October 2015

Conference 9

  • 10 months since introduction of new Code
  • Have not taken court proceedings or issued IN
  • Currently investigating potential Code breaches
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Education activities

8 October 2015

Conference 10

  • Goal is to achieve compliance with Code
  • Providing guidance on the new Code
  • Free online education program for prospective franchisees
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Franchising Consultative Committee

8 October 2015

Conference 11

  • Includes franchisors, franchisees, lawyers, researchers
  • Discusses issues affecting the franchising sector
  • Later this year – membership review
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Unfair contract terms

8 October 2015

Conference 12

  • Will apply to many franchise agreements
  • Standard form contracts
  • Businesses with less than 20 employees
  • Contracts valued under $300,000 / $1 million (multi year)
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Unfair contract terms (cont.)

8 October 2015

Conference 13

  • When will a term be unfair?

– Causes significant imbalance – Not reasonably necessary to protect interests – Cause detriment to franchisee if relied upon

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Unfair contract terms (cont.)

8 October 2015

Conference 14

  • 12 month transition period
  • ACCC will work with sector during this period
  • Seeking voluntary changes to unfair terms
  • Start thinking about terms in FAs now
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International approaches

8 October 2015

Conference 15

  • ACCC interest in international regulation of franchise sector
  • Attended APEC conference
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Further information

8 October 2015

Conference 16

  • Contact the ACCC

– 1300 302 021 – www.accc.gov.au/franchising

  • Publications

– Franchisor compliance manual – Franchisee manual – www.accc.gov.au/publications

  • ACCC Franchising Information Network

– www.accc.gov.au/media/subscriptions