In its unanimous decision late last year in Karpik v Carnival Plc & Anor [2023] HCA 39 (the Ruby Princess Class Action) the High Court provided significant guidance on the broad application of Australia’s unfair contract terms (UCT) regime under the Australian Consumer Law (ACL), particularly in relation to class action waiver and exclusive jurisdiction […]
Read moreFor the first time a responsible franchisor entity has been penalised under section 558B of the Fair Work Act 2009 (Cth) for failing to take reasonable steps to prevent its franchisees from breaching the Act. On 4 June 2024 85 Degrees Coffee Australia Pty Ltd (85 Degrees) was found to have “systematic[ally] fail[ed] to ensure […]
Read moreOn 8 February 2024 the Federal Government released the Independent Review of the Franchising Code of Conduct by Dr Michael Schaper. The Review found the Code is generally fit for purpose and recommended relatively few amendments. A principal focus of the Review is a need for improved Government education and guidance to the sector. The […]
Read moreBig penalties and wider application to commence 9 November 2023 In late 2022 the Australian Parliament passed the Treasury Laws Amendment (More Competition, Better Prices) Act 2022 to expand the protection to small businesses under the Australian Consumer Law against unfair terms in standard form small business contracts. The number of contracts caught by the […]
Read moreTwo rounds of amendments to the Australian Franchising Code of Conduct come into force during April 2022. Franchisors should take note of the changes including increased penalties for breach of the Code and the new requirement for franchisors to register their details with the Commonwealth government. Franchise Disclosure Register – 1 April 2022 The Code […]
Read moreUnfair terms in standard form small business contracts are void under section 23(1) of the Australian Consumer Law. Between 23 August 2021 – 20 September 2021 the Australian government invited public submissions on an Exposure Draft of a bill to strengthen these laws. Persons entering into template supply terms, service agreements, franchise agreements, distribution agreements, […]
Read moreIntroduction Following a lengthy Parliamentary Inquiry commencing in March 2018, amendments to the Franchising Code of Conduct were released 1 June 2021. Of the 71 earlier recommendations made by the Parliamentary Joint Committee on Corporations and Financial Services some 11 substantive changes have been taken up impacting on the disclosure obligations of the franchisor, the […]
Read morePrivate businesses with a turnover of AU$3 million dollars or more operating in Australia must comply with the Privacy Act in relation to customer and other personal information they collect. Certain other prescribed businesses have obligations irrespective of their turnover. Obligations include having a clearly expressed and up to date privacy policy and notifying affected […]
Read moreThe Australian Competition and Consumer Commission (ACCC) has revealed the key findings of its recent compliance checks of a sample of franchisors in the food services sector. The ACCC investigated 12 separate food services industry franchisors. The report outlines the following issues. 8/12 of the franchisors made it difficult to contact former franchisees The Franchising […]
Read moreWhen the unfair contract terms provisions of the Australian Consumer Law were extended to apply to small business contracts in late 2016, some users of these contracts made no changes or took a fairly “light touch” approach to reviewing their template agreements. This is possibly because it was unlikely a dispute over whether a clause […]
Read moreFederal Court gives further direction on required content of annual marketing fund statements The Australian Competition and Consumer Commission’s recent investigations into the conduct of well known motor repairer, Ultra Tune, have resulted in the Federal Court ordering Ultra Tune to pay a penalty of $2,604,000 to the ACCC. On 18 January 2019, the Federal […]
Read moreSoftware is a key asset of many businesses. It may be essential to the ongoing operation of the business. Accordingly, significant business interruption and loss could be suffered if a business owner lost the ability to effectively use, maintain or modify that software. This could occur if the software was developed or is maintained by […]
Read moreConsciousness of the importance and value of intellectual property assets continues to grow. Given this increasing focus, those lending to businesses with significant IP assets must ensure any general security they take for this lending covers IP, as well as the more “traditional” assets of the borrower. Securities over personal property including IP are governed […]
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