THE CODE CONSEQUENCES OF BREACHING PART 2 – The Franchising Code of Conduct is a mandatory industry code prescribed under the Trade Practices Act 1974 (TPA) and thus has the force of law. The ACCC is responsible for: investigating possible breaches of the competition and consumer protection • provisions of the and, where appropriate, bringing proceedings against those suspected of breaching the Act; considering applications for immunity from the Act on a range of public interest • grounds; arbitrating on disputes over access to essential facilities and in the • telecommunications industry; assisting consumers who have suffered as a result of breaches of the Act to obtain • compensation or redress; generally ensuring a culture of compliance with the Act through education and • research.11 This part of the report explains the consequences of breaching Part 2. General A breach of Part 2 of the Franchising Code of Conduct constitutes a breach of section 51AD of the Trade Practices Act 1974 (Cth) (TPA) which reads: must not, in trade or commerce, contravene an applicable industry “A corporation code.” This section prohibits corporations from contravening mandatory industry codes, and voluntary codes where a corporation has bound itself to accepting that code, provided that such codes are prescribed under regulations made under section 51AE of the TPA. Consequences of Breaches Any person who suffers loss or damage as a consequence of a breach of section 51AD may: seek injunctions under section 80 of the TPA; •
THE CODE – CONSEQUENCES OF BREACHING PART 2 The Franchising Code of Conduct is a mandatory industry code prescribed under the Trade Practices Act 1974 (TPA) and thus has the force of law. The ACCC is responsible for: • investigating possible breaches of the competition and consumer protection provisions of the and, where appropriate, bringing proceedings against those suspected of breaching the Act; • considering applications for immunity from the Act on a range of public interest grounds; • arbitrating on disputes over access to essential facilities and in the telecommunications industry; • assisting consumers who have suffered as a result of breaches of the Act to obtain compensation or redress; • generally ensuring a culture of compliance with the Act through education and research.11 This part of the report explains the consequences of breaching Part 2. General A breach of Part 2 of the Franchising Code of Conduct constitutes a breach of section 51AD of the Trade Practices Act 1974 (Cth) (TPA) which reads: “A corporation must not, in trade or commerce, contravene an applicable industry code.” This section prohibits corporations from contravening mandatory industry codes, and voluntary codes where a corporation has bound itself to accepting that code, provided that such codes are prescribed under regulations made under section 51AE of the TPA. Consequences of Breaches Any person who suffers loss or damage as a consequence of a breach of section 51AD may: • seek injunctions under section 80 of the TPA;
FranchisingCodeReviewReport2006.docx