Breach of the Australian Franchising Code to result in fines

By Judith Miller

As foreshadowed by the coalition government earlier this year, penalties for breach of the Franchising Code of Conduct are to be introduced.

On 17 July 2014, the Competition and Consumer Amendment (Industry Code Penalties) Bill 2014 was introduced into Parliament. If the bill is passed, it will amend the Competition and Consumer Act 2010 by introducing the following two alternative means of penalising contraventions of the Franchising Code:

1. Allowing the Franchising Code to prescribe pecuniary penalties of up to 300 penalty units for a contravention of a civil penalty provision of the code. These penalties can only be imposed by a court…

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