While at the National Franchise Convention 2011 hosted by the Franchise Council of Australia, the Australian Competition and Consumer Commission has stated that it will focus on ensuring franchising compliance to improve its standing.
ACCC chairman, Rod Sims, acknowledged that while franchising offers many business opportunities, difficulties like the power imbalance in the franchise relationship too often leads to conflict. Further, the ACCC will use new investigation powers to ensure that the regulatory regime promotes confidence in the franchising sector, Sims said.
The recent amendments to the Competition and Consumer Act have enabled the ACCC to monitor compliance, and seek the disclosure of documents that franchisors must provide under the Franchise Code of Conduct. The ACCC is also able to investigate alleged breaches, such that franchisees can make complaints without fearing reprisal from franchisors.
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