Allphones facing court for misleading franchisees

Written on the 10 April 2008

The Australian Competition and Consumer Commission has commenced proceedings in the Federal Court in Sydney against Allphones Retail Pty Limited.

The ACCC alleges that, in operating this franchise system, Allphones failed to comply with Franchising Code of Conduct and engaged in misleading and deceptive conduct and unconscionable conduct towards its franchisees in contravention of sections 51AC, 51AD, 52 and 59 of the Trade Practices Act 1974.

Proceedings have also been taken against Allphones' director and Chief Executive Officer, Mr Matthew Donnellan; director and Chief Operating Officer, Mr Tony Baker; and former National Franchising Manager, Mr Ian Harkin, for allegedly being knowingly concerned in or party to the contravening conduct.

A directions hearing will be held in the Federal Court on 11 April 2008.

Source: www.accc.gov.au