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ACCC institutes proceedings against Allphones

The ACCC has instituted proceedings against Allphones for breaching court orders.

The ACCC alleges Allphones breached orders made in the Federal Court on October 9. The orders included:

• Allphones prohibited from withholding consent to the assignment of an Allphones franchise on the basis that the franchisee will not sign a deed releasing Allphones from liability.

• Allphones required to give the ACCC 7 days’ written notice of its intention to withhold consent to the assignment of an Allphones franchise on the basis that the new franchisee must enter into a new franchise agreement.

The action comes after the commission launched legal action in early 2008 alleging Allphones engaged in unconscionable conduct including withholding commissions, rebates from mobile handsets and bonus payments from franchisees. The October 2008 proceedings ended with the Federal Court ordering injunctions which restrained Allphones from engaging in conduct in negotiations with franchisees.

However the company has now breached those orders and a directions hearing has been set down in the Federal Court in Sydney for August 21 2009.

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Jessica Stanic

Jessica Stanic

Jessica has a background in both marketing and journalism and is dedicated to making the website the leading online resource for small to medium businesses with ambitions to grow.

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