Friday, 4 September 2020

Marketing fund statements: three things to get right

I was bit frustrated to get this email from the ACCC about the importance of franchisors making sure that they send out their marketing statements to franchisees on time, given my recent experiences with the ACCC.

I wrote to the ACCC on behalf of a whilstleblower in late 2018 to advise that a well known national franchisor had failed to send out any marketing statements to any franchisees for approximately 10 years. I provided the ACCC with some fairly compelling internal company documents to support the allegations.

After a 18 month investigation, the ACCC advised us that it had decided not to take any action against the franchisor in relation to approximately 10 years of contraventions because the franchisor had decided to start complying with the law from 2017.

I have to say that there is an appalling lack of consistency in some of the ACCC's enforcement decision making.

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