Allphones franchisees get better protection

The ACCC originally alleged that Allphones had breached section 52 of the Trade Practices Act 1974 by sending a Position Paper to its franchisees which was misleading or deceptive, in March.

According to the Australian Competition and Consumer Commission information provided by Allphones to franchisees in the context of this dispute resolution process was incorrect, incomplete and likely to mislead franchisees.

At the time the ACCC was concerned that without correct information franchisees could not be aware of what they might be giving up in agreeing to any settlement.

After two months of court of proceedings, Allphones has provided the court with undertakings.

The retailer has stated that it will not engage in negotiations or mediation with any franchisees without first providing a statement of the amounts it’s has received each year.

It will also provide to franchisees a statement clarifying certain parts of the Allphones Position Statement regarding the Optus Bonus and Optus Super-Bonus and the Hoy decision.

It has also undertaken to not withhold consent to the assignment of any of its franchise of the basis that the existing franchise has not and will not release it from liability in respect of the issues the subject of the notice.

The ACCC believes these undertakings will better protect Allphones franchisees to settle a dispute between the company and franchisees.