ACCC Investigations

A recent case in the Federal Court underlines the importance of properly responding to investigations which are undertaken by the Australian Competition & Consumer Commission (ACCC). The case is ACCC v Narnia Investments Pty Ltd [2009] FCS 395.

In this case, the ACCC was investigating potential unconscionable and misleading conduct by a franchisee in relation to the entry into a contract with a customer and the customer's right to a refund. In the course of its investigations, the ACCC sought from the franchisee details of its customer complaint handling procedures. This information was sought pursuant to the ACCC's statutory powers of investigation under section 155 of the Trade Practices Act (the Act). However, in its response to the ACCC, the franchisee provided false information to the ACCC. At a subsequent formal oral examination, the franchisee's director admitted that false information had been provided.