![]() Firstly, the ACCC has signalled an intent to pursue franchisors for breaching the Code. There are some valuable lessons from these events. The fact that paying the infringement notice is not an admission of guilt may get lost in the surrounding publicity, especially when the word ‘penalty’ is used. However, the payment does not prevent the ACCC investigating and prosecuting Domino’s for a different breach of the Code, nor does it require the ACCC to keep the infringement notice confidential. Rather, the payment effectively ends the ACCC’s investigation into the alleged breaches of the Code. means the ACCC can’t bring proceedings against Domino’s for the breach.Īccordingly, while the ACCC has referred to the payment as a ‘penalty’, there has not been any finding of wrongdoing against Domino’s.does not constitute an admission that the Code has been breached and.The Act provides that payment of an infringement notice: The ACCC issued an infringement notice in respect of those two breaches of the Code.ĭomino’s elected to pay the infringement notice. Franchisors must also have the marketing fund audited and provide franchisees with a copy of the auditor’s report within the same time period.ĭomino’s admitted to the ACCC that it had not provided its franchisees with the 2015/16 annual financial statement or auditor’s report until February 2017 (that is, about 4 months late). Unless 75% of all franchisees agree, within 4 months of the end of each financial year franchisors must give franchisees a copy of the annual financial statement for the marketing fund. According to the Code, franchisors must maintain a separate bank account for this fund and must generally use it for legitimate advertising expenses. In many franchise systems, franchisees pay into a marketing fund. The infringement notices related to Domino’s failure to provide documents about its marketing fund. According to the ACCC’s enforcement guidelines, infringement notices are likely to be issued for relatively isolated, minor breaches. ![]() Under the Competition and Consumer Act 2010 ( the Act), the ACCC can issue infringement notices if it has reasonable grounds to believe that a person has breached certain parts of the Code or the Act. The ‘penalty’ was paid after the ACCC issued Domino’s with an infringement notice. According to the ACCC, this represents the first ‘penalty’ for an alleged breach of the Code since it was revamped in 2015. Domino’s Pizza Enterprises Ltd ( Domino’s) has recently paid $18,000 to the ACCC in relation to two alleged breaches of the Franchising Code of Conduct ( the Code). ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |