First Domino to fall? ACCC obtains first penalty under the Franchising Code

Domino's Pizza Enterprises Ltd (Domino's) has recently paid $18,000 to the ACCC in relation to two alleged breaches of the Franchising Code of Conduct (the Code). According to the ACCC, this represents the first 'penalty' for an alleged breach of the Code since it was revamped in 2015.

The 'penalty' was paid after the ACCC issued Domino's with an infringement notice. Under the Competition and Consumer Act 2010 (the Act), the ACCC can issue infringement notices if it has reasonable grounds to believe that a person has breached certain parts of the Code or the Act. According to the ACCC's enforcement guidelines, infringement notices are likely to be issued for relatively isolated, minor breaches.