ACCC to focus on franchising in 2018
The ACCC has warned it will be focusing on franchising issues involving large or national franchisors in 2018.
The warning comes with the Australian Competition and Consumer Commission (ACCC) releasing its Small Business 2017 snapshot that gives an overview of its activities within the small business sector in 2017.
Across 2017, the ACCC took out seven small business related enforcement actions, including five for alleged breaches of the Franchising Code.
The ACCC also did 29 compliance checks in 2017 to ensure adherence with the franchising, horticulture, and food and grocery industry codes.
ACCC Deputy Chair, Dr Michael Schaper, said throughout 2018, the ACCC will have a particular focus on Franchising Code of Conduct issues involving large or national franchisors.
“The majority of small businesses that contact us are micro sized with less than four staff,” Dr Schaper said.
“We want small businesses to have a level playing field and every chance to succeed, so it’s our job to ensure everyone plays by the rules.”
The ACCC warning also comes as the Australian Federal Parliament prepares to conduct an inquiry into franchising in Australia. The inquiry was initiated after a series of reported issues with franchising within Australia.
- Communication lacking in franchising relationships
- Australia’s new mandatory Franchising Code of Conduct comes into effect