Review of Franchising Code of Conduct: Industry Consultation
Submission Date: 8 July 2013
The Competition and Consumer Committee of the Business Law Section of the Law Council of Australia (Committee) appreciates the opportunity to make submissions concerning the recommendations in the Review of the Franchising Code of Conduct (Code) presented by Mr Alan Wein (Wein Report).
The Committee's submission focuses on the following issues raised by the Wein Report:
- Recommendation 9 – Express obligation to act in good faith. The Committee opposes the recommendation to amend the Code to include an express obligation to act in good faith. Instead, the Committee considers that either of Option 4 (education as a complement to Option 1) or Option 5 (Code requirement for good faith clauses in Franchise Agreements) would represent a more prudent and effective response to this issue; and
- Recommendation 15 - Enforcement of the Code, in particular the proposal to introduce civil penalties for breaches of the Code, and an expanded audit right. The Committee's view is that the introduction of civil penalties is not warranted, and the expansion of the ACCC's audit rights would be unduly burdensome and invasive.
Read the full submission below.
Last Updated on 07/04/2025
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