News

Ironically Unclean: Ali v Australian Competition and Consumer Commission [2021] FCAFC 109

The case of Ali v Australian Competition and Consumer Commission [2021] FCAFC 109 (‘Ali v ACCC’) is an appeal concerning the appellants Ms Sanam Ali (‘Ali’) and Mr Charles Cameron (‘Cameron’) who were the sole shareholder/director and the national franchising manager of Geowash respectively. Geowash offered car wash franchises to interested parties in Australia. The Australian Competition and Consumer Commission (‘ACCC’) initially brought proceedings concerning various alleged misrepresentations and alleged unconscionable conduct, and alleged breach of the obligation of good faith in the Competition and Consumer (Industry Codes – Franchising) Rgulation 2014 (Cth) (‘Franchising Code of Conduct’). Ali and Cameron sought an appeal against these claims on 13 grounds but were ultimately unsuccessful.

Franchising Update – MST Lawyers Presentation on Amendments to Franchising Code

22 Jun 2021

In early June the Federal Government released regulations making substantial changes to the Franchising Code of Conduct.

Why Jump?  Why NOT!  Court Orders $23 million in Penalties and Director to pay $900,000

28 May 2021

Jump Swim Schools asked prospective franchisees to consider ‘Why Jump?’ The answer has landed Jump Swim Schools in hot water. Federal Court has ordered Jump Swim Schools to pay penalties of $23 million. Director and founder must personally pay $900,000.

Megasave Couriers to pay $1.9m, its director to pay $200,000 to franchisees for Misleading and Deceptive Conduct

he Australian Competition and Consumer Commission (‘ACCC’) initiated action against Megasave after receiving complaints that Megasave failed to pay their franchisees a promised minimum weekly payment (around $2,000) and annual salary (typically $91,000).

The Federal Court of Australia found that the broken promise meant that Megasave and its sole director, Gary Bourne engaged in misleading and deceptive conduct under the Australian Consumer Law (‘ACL’). 

The Court ordered Megasave Couriers Pty Ltd (‘Megasave’) to pay with a $1.9 million to franchisees for misleading them. Megasave’s director, Gary Bourne was also ordered to pay $200,000 to franchisees.