ACCC Compliance Audits – Be Prepared!

Based on recent meetings with the Federal government and the ACCC in relation to the current Federal inquiry into franchising it appears one of the more likely end outcomes will be increased powers to the ACCC. This is likely to include giving the ACCC power to audit Franchising Code compliance on an ongoing basis in much the same way that the Australian Taxation Office audits compliance with income tax laws.

It may surprise some to know that currently the ACCC is only able to investigate a franchisor if there is a belief that there may have been a breach of the Code. The ACCC sees this restriction as impeding its capacity to be pro-active in its role as industry regulator. The Franchise Council of Australia is understood to be generally supportive of this change.