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WA Franchising Inquiry: Recommendations from the Parliamentary Committee

Economic and Industry Standing Committee Recommendations

as extracted from the Economics and Industry Standing Committee Inquiry ino the Franchising Bill 2010
Report No. 7 in the 38th Parliament 2011

Recommendation 1
The Committee recommends that the Franchising Bill 2010 be opposed.

Recommendation 2
The Committee recommends that, if the Franchising Bill 2010 is to proceed, clause 4(1) should be amended to explicitly remove any ambiguity as to whether, and to what extent, the Bill is intended to have extra-territorial application.

Recommendation 3
The Committee recommends that, if the Franchising Bill 2010 is to proceed, clause 4 should be amended to stipulate that the Bill does not apply to agreements that are excluded under sections 5(3)(a) and (b) of the Franchising Code of Conduct.

Recommendation 4
The Committee recommends that, if the Franchising Bill 2010 is to proceed, any statutory obligation to act in good faith should be left undefined.

Recommendation 5
The Minister for Small Business ensure that the effectiveness of the amendments to the Competition and Consumer Act 2010 and the Franchising Code of Conduct is reviewed in 2013 by the federal government, with particular emphasis given to considering the need to introduce: civil monetary penalties for breaches of the Franchising Code of Conduct; and, a general statutory obligation to act in good faith into the Code.

Recommendation 6
If the Bill is to be enacted, the Minister for Commerce make sure that administrative arrangements are made between the ACCC and the Commissioner for Consumer Protection to ensure that the risk of a multiplicity of actions under clause 12 is negated.

Recommendation 7
The Committee recommends that, if the Franchising Bill 2010 is to proceed, clause 13(2) should be amended to apply only to the Commissioner for Consumer Protection.

Recommendation 8
The Committee recommends that, if the Franchising Bill 2010 is to proceed, clause 14(1)(b) “a renewal order” should be removed.

Recommendation 9
The Committee recommends that, if the Franchising Bill 2010 is to proceed, clause 15(1) should be deleted and clause 15(2) should be amended to read: A person who suffers loss or damage by an act or omission of another person that contravenes this Act has a cause of action against that person for damages for the loss or damage.


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