Posted by Elizabeth Gore-Jones
on 7 March 2023
On 7 March 2023, the ACCC outlined its compliance and enforcement priorities for 2023 and 2024.
It specifically mentioned franchisees and in a media release today stated:
“The introduction of new laws prohibiting unfair contract terms that include a new penalty regime later this year would be an important change for consumers and small business and would also play an important role in the ACCC’s enforcement priorities.”
“Businesses need to understand their responsibilities under these new laws, or they could find themselves subject to severe penalties.”
“We will be working to ensure that consumers and small businesses, including franchisees, enjoy the full benefit of these strengthened laws.”*
The Franchise & Business Lawyers have been working with our clients to review franchise documentation to assess the risk and, where necessary, make changes prior to the new penalty provisions coming into effect.
The new changes will impose harsh fines for just including an unfair contract term. The maximum penalty per contravention could be greater than $50million for a company $2.5million for individuals.
Franchisors and all businesses entering into, what may be perceived to be a standard form contract, should be reviewing their documents as a priority as these penalties are harsh and the ACCC has indicated will be a priority.
You can contact The Franchise & Business Lawyers to assist you in this process.
*ACCC media release number 20/23
