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Franchise Special Report 2011 - Competition and Consumer Law Impacts - APR11
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Competition and Consumer Law Impacts on the Franchise Industry
Trade Practices Out - Competition and Consumer Law In
All franchise businesses, whether they provide goods or services, and whether they deal with consumers or other businesses (ie within a franchise system of franchisor/master franchisee/franchisee) must be aware of these laws and take steps to comply.
Top 10 Urgent Franchise System CCA Checklist Competition and Consumer Law Impacts on Franchise Industry
1. Majority of changes came into effect on 1 January 2011
2. Many changes affect business-to-business transactions as well as business-to-consumer transactions
3. Unfair contract terms deemed to be void
4. Consumer guarantees replace implied warranties
5. Mandatory two day reporting period for instances of injury, illness or death caused by consumer goods or product-related services
6. Misleading and deceptive conduct provisions remain unchanged
7. Increased investigative, audit and enforcement powers granted to ACCC
8. Scope of remedy of damages extended to enable claims for consequential loss
9. Substantial penalties for offences and civil penalties
10.Urgent action required to ensure compliance for Franchisors and Franchisees
To read the full article about the impacts the Competition and Consumer Law will have on the franchise industry please click here.
