Competition Commission sets its sights on fast food franchises
The Australian Competition and Consumer Commission has announced that it is to begin auditing franchisors in the take-away food and fitness industries to check they comply with the Franchising Code of Conduct.
ACCC Deputy Chairman Dr Michael Schaper
The announcement was made by ACCC Deputy Chairman Dr Michael Schaper at the Legal Symposium at the National Franchise Convention. He said the powers will be used to target industries which are generating a disproportionate number of complaints.
“In the ACCC’s next round of audits we will be looking at franchisors from the take-away food and health and fitness industries, however our audits will not be restricted to these two sectors,” he said.
“The ACCC has actively enforced the Franchising Code since its introduction in 1998. During this time we have taken successful court action against more than 20 franchisors and have also obtained court enforceable undertakings from more than 10 franchisors.
“These cases cover unconscionable conduct, misleading and deceptive conduct and contraventions of the Franchising Code.”
He said since 2011 the ACCC has has audited around 50 franchisors.