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ARTICLE · 16 DECEMBER 2013

ACCC to target franchisors

Cooper Grace Ward
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The ACCC will commence a new round of audits focusing on franchises in the takeaway food and health and fitness industries.

AustraliaCorporate/Commercial Law
Charles Sweeney
Charles Sweeney
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The ACCC has announced that it will commence a new round of audits focusing on franchises in the takeaway food and health and fitness industries.

Under section 51ADD of the Competition and Consumer Act, the ACCC has the power to audit documents required to be generated under the Franchising Code of Conduct, such as disclosure documents and marketing fund statements.

The audit power was introduced in 2001 and since then the ACCC has audited over 50 franchisors.

The new round of audits comes as a response to the ACCC having received 740 complaints and 114 enquiries about people involved in franchising in the past year.

The takeaway food and health and fitness industries have been targeted as they generate a disproportionate number of these complaints. However, the ACCC has not confined the new audits and will extend the scope to other industries.

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