Home About Us Membership Information Events Awards Media Education Representation Bookshop Partnership Contact Us

ACCC to be given more power as Competition and Consumer Act amendment passes in the Senate

Written on the 5 September 2014

The Coalition Government last night passed legislation in the Senate that gives the Australian Competition and Consumer Commission (ACCC) the power to apply pecuniary penalties to businesses which breach industry codes.

This legislation paves the way through Parliament for the Franchising Code of Conduct (the Code) update expected to be implemented on 1 January, 2015.

The legislation, which had strong bipartisan support in both houses, provides the ACCC with the power to apply infringement notices to a franchisor or franchisee to the value of $8,500 or a pecuniary penalty of up to $51,000 imposed by the Court.

In his second reading speech in July, Minister for Small Business, Bruce Billson, who referred to the penalties as ‘reasonable and moderate’ said civil pecuniary penalties (CPP) will only apply to “provisions of the Franchising Code of Conduct that are fundamental to the purpose of the Code and where non-compliance is likely to cause significant detriment to the other party.”

Franchise Council of Australia Chairman, Michael Paul said the submission and consultation process to this point had been a decidedly positive one and the FCA and its members would now wait to see the Code update introduced to Parliament.

“The Code update process has been in motion since January 2013 and the FCA has been pleased with the level of consultation from both Governments in that time. It appears our concerns in relation to the broad application of penalties, and the potential for them to apply to trivial breaches, have been addressed by the Minister.   We support the introduction of penalties to deal with those businesses that seek to masquerade as franchises or ignore or commit flagrant breaches of the Code. Those organisations are not welcome as FCA members, and should feel the full force of the law.  With the passing of the CCA amendment, we now wait to see the final version of the revised Franchising Code of Conduct.

“We welcome the ongoing commitment of the Government to enhancing the Australian franchising sector – a sector that can already boast world’s best practice thanks to its practical regulation and passionate business people,” Mr Paul said.

The Franchising Code of Conduct update is expected to be introduced to Parliament in time for implementation at the start of 2015.

ENDS

For more information, please contact:
Stephanie Wells, Marketing Communications Manager
Franchise Council of Australia 1300 669 030 stephanie.wells@franchise.org.au

Latest News

The Franchise Council of Australia has welcomed the Federal Government's appointment of a new adviser to resolve disputes under the Franchis...
The Franchise Council of Australia has welcomed the Federal Government's response to calls from business and lenders to act to underpin avai...
The Franchise Council of Australia (FCA) recognised franchising's best in South Australia at the 2018 SA Excellence in Franchising Awards pr...

Upcoming Events

WA Regional Awards 2019

Start Time: 6:30pm
Date: Thursday 18th July 2019

VIC/TAS Regional Awards 2019

Start Time: 6:00pm
Date: Wednesday 24th July 2019

About

About the FCA Board of Directors Hall of Fame Hall of Fame Eligibility Criteria

 

Services

Promote your business Have a complaint?

Join

About Membership Member Benefits How to Join FCA Member Standards

 

Partnerships

Advertise your business Sponsorship & Exhibition Testimonials Become an FCA Partner

Learn

FCA Representation Franchising Code of Conduct FCA International

 

Media and Communication

Franchise Review FCA Media ReleasesFranchising in the Media

Franchise Council of Australia

Postal Address

Level 19, 567 Collins Street

Melbourne VIC 3000

Phone: 1300 669 030

Fax: +61 3 9508 0899

 

Website Proudly Developed by:

www.bloomtools.com

 

Women in FranchisingFranchise AcademyFranchise Council of Australia